Franklin India Focused Equity mutual fund review: Has seen sharp outperformance in recent years

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

How the fund has performed

Where the fund invests

Basic facts

  • Date of launch: 26 July 2007
  • Category: Equity
  • Type: Flexicap
  • AUM (As on 31 May 2021): Rs 7,794 cr
  • Benchmark: NIFTY 500 Total Return Index

What it costs

  • NAV (As on 7 July 2021)
  • Growth option: Rs 59.72
  • IDCW: Rs 30.01
  • Minimum Investment: Rs 5,000
  • Minimum SIP amount: Rs 500
  • Expense ratio (As on 30 April 2021) (%): 1.84
  • Exit load: 1% for redemption within 365 days

Fund Manager: Roshi Jain
Tenure: 9 Years

Top 5 sectors in portfolio (%)

Top 5 stocks in portfolio (%)

Recent portfolio changes

  • Nw Entrants:Bajaj Auto
  • Complete Exits: Infosys, Ultratech Cement.
  • Increasing allocation: United Spirits, Cipla.

How risky is it?

Source: Value Research

Should You Buy

Previously run as a flexi-cap fund, this fund adopted the focused mandate when it was introduced as a separate category. While the mandate necessitates a concentrated portfolio, the fund manager takes it a step further with outsized positions in top bets and sharp deviations relative to index. The fund manager adopts a value-conscious investing style that tilts the portfolio towards contrarian bets. The fund enjoys a healthy track record and has outperformed sharply in recent years. The presence of a skilled fund manager also provides comfort. However, a combination of aggressive focused stance with a value bent may expose the fund to volatility and bouts of underperformance if the thesis takes time to bear fruit.