Skip to main content

Franklin India Taxshield Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Franklin Taxshield

A tax plan for the cautious investor

If you have limited risk appetite and are looking for tax-saving equity options, then Franklin India Taxshield is a good scheme to invest in the ELSS universe. With a return of 25.4 per cent compounded annually in the last 10 years, the fund convincingly beat its benchmark S&P CNX 500's return of 19.8 per cent over the same period.


This record is impressive considering that the benchmark index is a more diversified basket of stocks accounting for over 90 per cent of the total market cap, and is considered a tough benchmark to beat in the long term. The index has a good proportion of mid-cap stocks as well. Franklin Taxshield, on the other hand, managed this returns by predominantly investing in large-cap stocks

Suitability

Franklin Taxshield is suitable only for investors who cannot stomach too much risk and are content with reasonable returns that compensate the limited risk assumed. The fund fits such investors for the following reasons: one, it predominantly invests in large-cap blue chip stocks that are relatively less volatile in terms of earnings performance. Two, such exposure also contains downside risk during steep market falls, when mid-cap stocks typically bear the brunt of the market rout.

Three, except in 2009 when the fund preferred to participate in the market rally that just began, it has since 2004, been a regular dividend distributor for those who opted for a payout. As is the case with many funds from the Franklin house, the fund often pays dividends when it anticipates markets to peak.For instance, it paid hefty dividends twice in 2007, once at the beginning and once closer to the end of that year when markets rallied. To this extent, it is suitable for investors who wish to take some money off the table, given that their investment is otherwise subject to a three-year lock-in.

 

Performance

Franklin India Taxshield has a good record in the diversified fund universe, making it to the top quartile of performance chart over 3, 5, 7 and 10 year time frames. Unless you need the money after the three-year lock-in, you can consider holding this fund for longer time frames as well.

 

The fund performs particularly well in volatile markets as demonstrated in the last three years. Its compounded annual return over this period, at 10.6 per cent, is higher than top peers such as ICICI Pru Tax Plan. On a risk-adjusted basis (measured by Sharpe Ratio), the fund stands out as the top player in the ELSS universe over the last three years, suggesting that it delivers adequately for the measured risk it undertakes.

 

Over the same period, the fund beat its benchmark close to 90 per cent of the times on a rolling return basis. Over the last one year though, the fund lagged its benchmark by a percentage point. It also lagged quite a few peers. This could be primarily attributed to the rally in midcaps. The fund's benchmark has a good proportion in mid-cap stocks. Top peers in the last one year, such as Reliance Tax Saver also held as much as two-thirds of their holding in mid-cap stocks to ride the rally. Franklin Tax Shield, though, held about a fourth in midcaps.

 

Portfolio

Besides lower exposure to mid-caps, Franklin India Taxshield's exposure to certain sectors until the beginning of 2012 did not help either. Higher exposure to sectors such as software, which underperformed, and lower exposure to the robust pharma sector a year ago, may also have resulted in marginal underperformance. But the fund had by mid 2012 pruned exposure to software by reducing stakes in stocks such as Infosys and by also upping its holding in the pharma space. Holding in the telecom stock Bharti Airtel was also reduced. Gateway Distriparks, Gujarat Pipavav Port and Jagran Prakashan are some of the interesting mid-cap stocks that the fund holds.The fund is managed by Anand Radhakrishnan and Anil Prabhudas

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund

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 JP Morgan launches Emerging Markets Opportunities Equity Offshore Fund    The new fund offer opens for subscription on 16 th June and closes on 30 th June. JP Morgan Mutual Fund today announced the launch of its open end fund of fund called Emerging Markets Opportunities Equity Offshore Fund. The fund will invest in an aggressively managed portfolio of emerging market companies in the underlying fund - JPMorgan Funds - Emerging Markets Opportunities Fund, says a JP Morgan press release. Noriko Kuroki, Client Portfolio Manager, Global Emerging Markets Team (Singapore), JPMAM said, "Emerging markets have been out of favour for several years, as growth decelerated and earnings struggled. However, in a world of globalisation, we believe that EM will eventually re-couple with DM, leading to the long-aw...

Nifty F&O

  1. What is a straddle? A strategy using Nifty options usually before a major event or when one is uncertain of market direction. Comprises purchase of a Nifty call and put option of the same strike price. Usually strikes are purchased closer to the level of the underlying index. 2. What is better ­ buying or selling a straddle? It depends.Implied volatili ty of options, or near-term expectations of price swings in an un derlier like Nifty , usually peaks before an event and falls when the outcome plays out ­ like Infy re sults in past years. However, once the event plays out, a sharp rise or fall in Nifty could result in price of the straddle rising ­ benefiting buy ers. But, normally , those who sell or write options charge hefty premiums from buyers in the hope that fall in volatility would ensure the options end out-of-the-money, hurting buyers. 3. So, do straddle sellers end up winning most of the time? Yes. That's invariably the case when market volatility is trending on the...

UTI Equity Fund Invest Online

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   UTI Equity Fund   Invest Online UTI Equity is a large cap-oriented fund with assets under management worth Rs. 2,269 crore (as on June 30, 2013). The fund was originally launched in May 1992 as UTI Mastergain and is benchmarked against S&P BSE 100. A couple of years back the name of the fund was changed to UTI Equity Fund and many of the smaller funds of UTI were merged into this fund. Performance The fund has outperformed its benchmark as well as the equity diversified category average in the last one-, three- and five-year periods. It has repeated the same in 2013 (as on May 31). Since its inception the fund has delivered an impressive 26 per cent compounded annual growth rate which is superior to its benchmark performance in the same period. Y...

Good time to invest in Infrastructure Funds

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   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...
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