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Franklin India Flexi Cap Fund is an open-ended dynamic equity scheme that invests across various market capitalizations including large, mid, and small-cap stocks. Its primary function is to provide growth of capital and regular dividends through a portfolio of equity, debt, and money market instruments. It adopts a flexible style of investing and can invest up to 100% of its assets in large-cap stocks or up to 35% in mid-cap and small-cap stocks. The fund’s benchmark is the S&P BSE 500 Total Return Index.
Understanding Franklin India Flexi Cap Fund
Franklin India Flexi Cap Fund is managed by Franklin Templeton Asset Management (India) Private Ltd. Franklin Templeton is one of the largest asset managers in India with over 25 years of presence and a wide range of funds across categories. The following are some of the key features of the fund:
- The fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity-related instruments across market capitalizations.
- The fund manager aims to identify opportunities through a bottom-up stock selection process and focuses on investing in high-quality businesses.
- The fund has consistently outperformed its benchmark index over periods of 5-10 years.
- It has low portfolio turnover which helps in keeping transaction costs low.
- Franklin India Flexi Cap Fund Growth has ₹12,802 Crores worth of assets under management (AUM)
Performance of Franklin India Flexi Cap Fund
The Franklin India Flexi Cap Fund has been around for 29 years and 2 months and it has consistently provided good yearly returns since it started. The fund's performance is outlined across various time frames:
1-Year Return:
The fund achieved a notable 21.62% return over the past year.
3-Year Return
The fund has achieved an impressive average annual return of 23.58% over the last three years.
5-Year Return
Over five years, investors experienced a solid average annual return of 17.65%. This shows the fund's ability to generate consistent returns over a mid-term horizon.
10-Year Return
Over the past ten years, the fund has delivered an average annual return of 17.3%. This number highlights the fund’s expertise in long-term investments.
Asset & Portfolio Allocation
As of November 2023, the fund's portfolio and assets are strategically spread across different categories:
Equity Allocation:
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- Large Cap: 69.46%
- Mid Cap: 12.31%
- Small Cap: 10.01%
- Other Cap: 0%
Debt Allocation:
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- 0.46%
Other Allocation:
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- 7.76%
The equity allocation dominates the portfolio. It constitutes 91.77% of the fund's assets. The distribution by market capitalization highlights a focus on large-cap stocks (69.46%), with lesser exposure to mid-cap (12.31%) and small-cap (10.01%) segments.
Top stock holdings are:
ICICI Bank Ltd. (7.67%):
ICICI Bank is a well-known and prominent private-sector bank in India.
HDFC Bank Ltd. (7.31%)
HDFC Bank Limited is a leading private-sector bank in India.
Larsen & Toubro Ltd. (5.59%)
Larsen & Toubro Limited commonly known as L&T, is a major Indian multinational company with a significant presence in the engineering, construction, technology, manufacturing, and financial services sectors.
Axis Bank Ltd. (4.87%)
Axis Bank Ltd. is a leading private-sector bank in India.
The portfolio’s allocation by sector:
- Financial: 26.38%
- Technology: 9.25%
- Energy: 9.22%
- Consumer Staples: 8.32%
NAV For Franklin India Flexi Cap Fund
The NAV for Franklin India Flexi Cap Fund is as follows:
- Growth: ₹1,376.7173
- Franklin India Flexi Cap Fund Divided NAV: ₹63.5017
For the Direct plans of the same fund:
- Franklin India Flexi Cap Fund Direct Growth: ₹1,515.8868
- Direct-Dividend NAV: ₹71.7594
Franklin India Flexi Cap Fund vs Other Funds
The comparison of Franklin India Flexi Cap Fund with other Flexi Cap funds is as follows:
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Quant Flexi Cap Fund (24.04%)
Quant Flexi Cap Fund is a mutual fund that invests across market capitalizations. It outperforms Franklin India Flexi Cap Fund.
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Parag Parikh Flexi Cap Fund (20.54%)
Parag Parikh Flexi Cap Fund is known for its diversified approach of investing in a mix of equity and equity-related instruments focusing on long-term wealth creation. It shows a slightly higher annual return compared to the Franklin India Flexi Cap Fund.
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JM Flexicap Fund (20.22%)
JM Flexicap Fund is a mutual fund that invests flexibly across large, mid, and small-cap stocks. It demonstrates a performance close to the Parag Parikh Flexi Cap Fund but slightly higher than Franklin’s fund.
Since its inception, the Franklin India Flexi Cap Fund has recorded a commendable average annual return of 18.49%. This fund positions itself in the middle range among the compared funds.
Final Words
The Franklin India Flexi Cap Fund stands out as a reliable choice in the Indian stock market. It offers a unique investment approach across market capitalizations. It has a robust track record of 29 years and consistent annual returns. The fund's strategic portfolio allocation and flexible investing style show its ability to adapt to market conditions. All these features make this fund a notable option for investors seeking long-term capital appreciation.