Franklin India Smaller Companies Fund

Franklin India Smaller Companies Fund is managed by Mr. R. Janakiraman & K. N. Sivasubramanian. The scheme aims to provide long-term capital appreciation by investing in mid and small cap companies. Normally, it would invest atleast 75 per cent of its assets in smaller companies. The scheme’s performance has been similar in comparison to other funds in this category.

Where does Franklin India Smaller Companies Fund invest your money?

Franklin India Smaller Companies Fund is a equity oriented mid cap fund which means majority of your money will be invested in stocks of mid and small sized companies. Large cap companies tend to be stable compared to mid cap and small cap companies while mid cap companies give kicker returns. Presently it has just 8.54% exposure to large sized companies, 49.54% exposure to mid sized companies and 39.86% exposure to small sized companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for what?
  • Child's education
  • Child's marriage
  • Planning for retirement
  • Home Purchase
How has Franklin India Smaller Companies Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Jan 2006, your value of investments would be around Rs 1.61 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.38 lakhs. The performance has been similar to other mutual funds in this category. It has been giving around 6.79% returns for those who have stayed invested for 5 years.  

Assume you had invested Rs 10,000 every month in Franklin India Smaller Companies Fund through SIP for 5 years today you would just have around Rs 8.62 lakhs.

How will Franklin India Smaller Companies 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 follow 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%. 

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.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
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.

How frequently you need to monitor 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 are the charges applicable?

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 Smaller Companies Fund is 2.50%. 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.

What are the tax implications?

The returns in an equity mutual fund are absolutely tax free, provided you do not withdraw within 1 year. 

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