Performance review: Franklin India Focused Equity Fund

Franklin Templeton Asset Management Company India Private Limited came up with its focussed fund offering in July 2007. Franklin India Focused Equity fund is a focussed multi-cap fund, which is benchmarked against the Nifty 500 Total Returns Index (TRI). The investment objective of this fund is to achieve capital appreciation by predominantly investing in domestic companies or sectors with high growth rates or potential. Having said, this fund follows value style investing. Presently, it holds around 27 stocks of which, SBI has the highest weightage of 10.51 per cent. On the sectoral front, it overweighs on the financial sector, followed by the construction and energy sector. As you are now aware of the basic fundamentals of this fund, let us dive straight into reviewing its performance.

Source: Value Research

Source: Value Research

As you can see, this fund initially underperformed S&P BSE 500 TRI but still, most of the time, performed in-line with the index. However, it struggled to beat the index. This can be attributed to the global financial crisis, which took place in the year 2008. Also, the fund being concentrated in nature, it faced a good amount of drawdown when compared with S&P BSE 500 TRI. However, after 2013, this fund began to outperform the index. Besides, this outperformance was short-lived as ever since July 2016, it again began to underperform the benchmark. In fact, it could not even take the advantage of the rally that began after the great fall in the month of March 2020.

Overall, from the performance point of view, this fund has not been able to create that charm among investors as despite being launched in the year 2007, its assets under management (AUM) stands at Rs 7,205 crore. Whereas, various funds such as Axis Focused 25 Fund, Motilal Oswal Multi-Cap 35 Fund, etc. that were launched after this scheme, have a higher AUM.