Franklin India Bluechip Fund

Franklin India Bluechip fund is managed by Anand Radhakrishnan and Anand Vasudevan. The fund managers are experienced in the segment and have adopted a bottom up approach while picking stocks. The fund has consistently beaten the sensex in the long run.

Where does Franklin India BlueChip Fund invest your money?

Franklin India Bluechip is a large cap fund which means your money will be primarily invested in giant and large companies. Franklin India BlueChip fund has 83.94% exposure to large size companies and about 14.20% exposure in medium size companies.  Large cap companies tend to be stable compared to mid cap and small cap companies. Mid cap companies could give some kicker returns.

Suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
Not suitable for?
  • Creating wealth quickly­­­­
  • Short term needs
  • Lifestyle needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Make Franklin India Bluechip as part of your core portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio. Core portfolio is investments that are made for your basic goals.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment
Recommended
How has Franklin India Bluechip Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at December 1993 your value of investments would be around Rs 23.35 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.47 lakhs. The performance has been better than other large cap mutual funds. The fund has been giving at around 8.08% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Franklin India Bluechip through SIP for the past 5 years today you would have around Rs 8.24 lakhs.

How will Franklin India Bluechip Fund perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%.

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Franklin India Bluechip Fund  is 1.81%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio. 

When to enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Franklin India Bluechip fund does not qualify for sec 80C ELSS benefits.

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