Franklin India Flexi Cap Fund

Franklin India Flexi Cap Fund is one of the average performing funds in its category. This fund is managed by K N Siva Subramaniam & Anand Vasudevan. Siva has over 20 years experience in investment management and is one of the most experienced ones in the industry. Anand joined as the fund’s co-manager in Feb 2011. Coming from the house of Franklin Templeton Investments this fund has been a great performer. If you already hold units in this fund you can continue to do so. It will make a good one to add to your satellite portfolio.

Where does Franklin India Flexi Cap fund invest your money?

Franklin India Flexi Cap Fund is a large and mid cap fund which means your money will be primarily invested in large and mid cap companies. And just to give kicker returns the fund has some exposure in mid cap companies as well. Large cap companies tend to be stable compared to mid cap and small cap companies. This fund allocates around 63.2% to stocks of large cap companies, 28.65% to stocks of medium cap companies and 7.66% to stocks of small cap companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Core goals
  • Short term goals
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Do not make Franklin India Flexi Cap Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Franklin India Flexi Cap Fund can be part of your satellite 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.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment.
Recommended
How has Franklin India Flexi Cap fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 2005, your value of investments would be around Rs. 2.9 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.7 lakhs. The performance has been better or similar to other mutual funds in this category. The fund has been giving at around 7% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Franklin India Flexi Cap Fund through SIP for the past 5 years today you would have around Rs 7.99 lakhs.

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 Flexi Cap Fund is 1.93%. 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 if it is an SIP. Do not follow news channel and other experts trying 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 closer 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 do not withdraw within 1 year. Franklin India Flexi Cap Fund does not qualify for sec 80C ELSS benefits.

Better alternatives for satellite portfolio

Fintotal Product Analysis is the ideal place to seek unbaised and neutral view on all financial products.

Do not get fooled by agents and distributors, just check here before you make any purchases.


Explore more in a easy manner.


Table of Contents

Table of Contents