Franklin India Prima Fund

Franklin India Prima fund is being managed by R Janakiraman and K N Sivasubramanian.The fund managers seek aggressive growth with the aim of providing medium to long term capital appreciation and income generation. You can continue your investments in this fund but if you are a new investor there certainly are better performing funds in this category to invest in. Do not make this part of your core portfolio. Not more than 30% of your total investment funds must be allocated to this scheme.

Where does Franklin India Prima Fund invest your money ?

Franklin India Prima fund is a diversified cap fund which means your money will be invested in giant, large, medium and small companies. Franklin India Prima fund has 68.53% exposure to mid size companies, 19.84% exposure in small size companies and the remainder is exposed to giant, large and micro size companies.  Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns. Unfortunately it does not happen too frequently.

Suitable for what?
  • Creation of wealth
  • Lifestyle Needs
Not Suitable for?
  • Child's Education
  • Child's Marriage
  • Planning for Retirement
  • Buying a house 
How much to invest?

Minimum one time investment is Rs 5,000 and minimum SIP is Rs 500. Do not make Franklin India Prima Fund as part of your core portfolio. Core portfolio includes investments that are made for your basic goals and makes up about 70% of your investment portfolio. Franklin India Prima Fund can be part of your satellite portfolio. Do not make 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
Recommended
Our recommendation for existing investment
Recommended
How has Franklin India Prima Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Dec 1993, your value of investments would be around Rs 31.55 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.41 lakhs. The performance has been not good compared to other small and mid cap mutual fund. The fund has been giving at around 7.18% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Franklin India Prima through SIP for the past 5 years today you would have around Rs 8.70 lakhs.

How will it perform Franklin India Prima Fund 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 8% then you can expect top performing mutual funds to give you returns in excess of 14%.

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 Prima Fund is 2.17%. 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 exit?

Withdraw when your goals are closer to achievement. Do not remove the money during 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 Prima does not qualify for sec 80C ELSS benefits.

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