Franklin India Smaller Companies Fund Bigger Things Have Small Beginnings
Fund Overview • Franklin India Smaller Companies Fund is a top performing small-cap fund that invests predominantly in the stocks of small and mid-cap companies. • It is one of the most chosen schemes in the small-cap category as the AUM is high.
• It has provided outstanding gains in the long term. • It has a well-diversified portfolio and is less riskier than other schemes in the small-cap category. • It has the ability to deliver highest gains in the positive market conditions.
Benefits of Investing in Small Cap Funds
Highest Growth Potential Small Cap Funds have the ability to provide highest gains in the long term as the investments are done in emerging smaller companies.
Attractive Valuations
Professional Management
Diversification
Small-cap companies are new and are available at lower valuation. The stocks of these companies are available at undervalued price.
Investing directly in smallcap stocks can be risky but mutual funds are managed by professionals who are trained and experienced to pick best stocks.
Small-cap mutual funds have a diversified portfolio involving stocks from multiple sectors. The diversification reduces the risk and promotes consistency.
Fund Details Category:
Equity: Small Cap
Assets:
Rs 7,577 crore (As on May 31, 2019)
Expense:
1.87% (As on Apr 30, 2019)
Fund House:
Franklin Templeton Mutual Fund
Launch Date:
13-Jan-06
Benchmark:
NIFTY Smallcap 250 TRI
Exit Load (%)
1% for redemption within 365 days
Investment Strategy • Franklin India Smaller Companies Fund follows growth oriented investment strategy by targeting companies with high growth potential in the long term • The fund managers select large number of stocks for the portfolio to increase diversification. • More than 20 sectors are involved in the portfolio of the scheme. • A residual proportion of the corpus is kept as cash or cash equivalent. • Stocks with high liquidity are preffered for the porfolio.
Market Allocation
Giant (%)
Large (%)
Mid (%)
Small (%)
Top 10 Holdings in the Fund Stock
Sector
Allocation
HDFC Bank
Financial
4.43
Deepak Nitrite
Chemicals
2.4
Vardhman Textiles
Textiles
2.38
Finolex Cables
Engineering
2.38
HPCL
Energy
2.36
Cyient
Technology
2.34
Brigade Enterprises
Construction
2.11
Atul
Chemicals
2.06
Voltas
Cons Durable
1.93
DCB Bank
Financial
1.92
Fund Managers
Mr Hari Shyamsunder Senior Fund Manager (B.E., PGDM, CFA)
Mr R Janakiraman Senior Fund Manager (B.E., PGDM)
Franklin India Smaller Companies Fund is managed to 2 highly experienced fund managers at Franklin Mutual Fund. They have more than a decade of experience in the asset managent business and have the ability to identify best stocks in the small-cap segment.
Past Performance Trailing Returns (%)
YTD
3-M
6-M
1-Y
3-Y
5-Y
7-Y
10-Y
Fund
3.69
1.54
8.17
-8.02
8.48
14.73
22.35
18.51
S&P BSE 250 SmallCap TRI
0.49
-1.01
5.84
-12.23
9.03
7.11
11
8.6
Category
1.91
0.65
5.95
-7.98
10.48
14.59
18.62
15.45
• Franklin India Smaller Companies Fund has delivered outstanding returns in the long term. • The fund follows a high risk mandate and the returns can even dip by -12% under worst conditions. • It has always provided highest gains under favourable market conditions and has limited the negative returns under bearish trends.
Who Should Invest?
Small-Cap Investors
Retirement Planning
Long Term Wealth Gain
Adventurous Investors
Those investors who prefer small cap companies and invest directly in equities should consider investing in Franklin India Smaller Companies Fund.
If investments are started at early age, the scheme can provide superior returns in the long term and can be ideal for retirement planning for young investors.
Those investors who aim for higher wealth creation in long term can invest in Franklin India Smaller Companies Fund for better gains.
Franklin India Smaller Companies Fund is ideal for the investors who like taking high risk in investments for long term. low-risk investors must skip the scheme.
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Disclaimer: The information and suggestions of the funds in the presentation are for informative purpose only. The facts and figures in the presentation are as per the sources which include ValueResearch and Moneycontrol as on 12-6-2019. Mutual fund investments are subject to market risk. Read all the scheme related documents carefully.