Skip to main content

Franklin India High Growth Companies Fund

Top SIP Funds Online 

 

Franklin India High Growth Companies fund is a flexi-cap fund with an impressive 5-year annualized performance of 24.39%. After a good run in 2012, 2013 and 2014, it delivered below average performances in the following two calendar years.

Analyst Himanshu Srivastava assigned a Silver rating to the fund and explains what he likes about it.

  • We draw confidence from the fund manager's executional capabilities and research-driven investment approach.

Roshi Jain is an able manager who follows a sound process and is backed by a solid investment team. She's an old hand at Franklin Templeton Mutual Fund, having joined the fund house as an analyst in May 2005. She became the co-manager for this fund in October 2012 alongside Siva Subramanian and the lead manager in March 2014.

Our confidence in the fund and its prospects stems from the presence of Jain at the helm and a high-calibre investment team having experience in managing similar strategies successfully over a period.

  • Jain employs model portfolios as her initial reference point.

 Step 1

The team decides on a coverage list where they look for growth companies that fit their qualitative requirements. Only companies that have durable competitive advantages versus peers, sustainable business models, strong entry barriers, able management teams, and good corporate-governance standards are included in the coverage list.

Step 2

This is followed by quantitative analysis in which analysts gauge companies using a combination of discount cash flow models and quantitative parameters relevant to the sector.

Step 3

Analysts create sector-based model portfolios which are then combined by the research head to create market-cap based portfolios.

  • With the model portfolios as her initial reference point, the fund manager narrows down on her picks.

She scouts for sectors and stocks which have structural drivers, offer high growth and are available at reasonable valuations. She prefers companies which focus on organic growth rather than inorganic growth and have the potential to post a strong incremental ROIC over the long term.

Contra bets are with a long-term horizon only if the stock has been affected negatively due to external factors.

She does not shy away from taking significant sector and stock bets, and hence constructs a concentrated portfolio having 55%-60% of assets invested in top 10 stocks vis-à-vis the category average of 45%-50%. However, she ensures that it doesn't have significant exposures in two sectors which are fundamentally aligned. For instance, given she has high exposure to banking stocks, she has avoided investing in metal and mining companies.

  • The portfolio is currently positioned to benefit from a turnaround in economic growth.

Jain has been investing in sectors and companies which are related to domestic growth recovery rather than export-oriented.

The strategy has few limitations which does not permit her to invest in sectors which are capital-intensive and doesn't offer high growth prospects, such as utilities.

  • The fund manager has the capability to execute the strategy.

Under Roshi Jain (March 2014 to October 2017), the fund has clocked an annualised return of 28% thus outperforming its index IISL Nifty 500 (19%) and category average (23%). Subsequently it outperformed 84% of the Morningstar Category peers on the returns front and 86% of the competition on Morningstar risk-adjusted returns front.

In 2014 when Jain took over the fund, her investments in select stocks from the banking, basic materials, and industrial sectors paid off well. But the performance was underwhelming in 2015 as Jain's bets based on economic turnaround didn't pan out as expected. In 2016, her investments in stocks from the financial services and energy sectors helped the fund to outperform the category average and benchmark index.

This year's average performance is due to investments in stressed sectors like technology and healthcare.






SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com 

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now