Franklin India Prima Plus

Franklin India Prima Plus is managed by Anand Radhakrishnan and R. Janakiraman. The fund managers seek capital appreciation over the long-term by focusing on wealth creating companies across all sectors without bias. The fund’s performance was more or less decent since its launch in 2004 but it has slipped somewhat in the recent past. If you have invested in this fund continue to do so but keep a close watch on its performance.

Franklin India FMCG Fund and Franklin India Pharma Fund were merged to Franklin India Prima Plus on 09 September 2011.

Where does Franklin India Prima Plus invest your money ?

Franklin India Prima Plus is a large and mid cap fund which means your money will be primarily invested in giant and large companies. Franklin India Prima Plus fund has 61.04% exposure to giant and large size companies, about 31.24% exposure in medium size companies and 6.08% exposure to small 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 but this doesn’t happen too frequently.

 

Suitable for what?
  • Child's Education
  • Child's Marriage
  • Planning for Retirement
  • Buying a House
Not suitable for?
  • Creating of wealth
  • Short Term Needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Franklin India Prima Plus can be a 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. 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
Recommended
Our recommendation for existing investment
Recommended
How has Franklin India Prima Plus performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Sep 2004 your value of investments would be around Rs 24.86 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.39 lakhs. The performance has been similar to other large and mid cap mutual funds. The fund has been giving at around 6.95% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Franklin India Prima Plus through SIP for the past 5 years today you would have around Rs 8.13 lakhs.

How will Franklin India Prima Plus 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 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 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 Plus Fund is 1.92%. 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 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 do not withdraw within 1 year. Franklin India Prima Plus does not qualify for sec 80C ELSS benefits.

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