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Franklin Build India Fund

The Franklin Build India Fund is an open ended fund which invests in companies which are either directly or indirectly working in infrastructure related activities. The policy adopted by this fund is not concerned about short term volatility with a focus on structural themes and is suitable for investors who are not averse to risk, with a patience level of at least 3 years.

Type or nature of fund

Franklin Build India Fund is an Open ended equity fund which invests either directly or indirectly in companies which are into the infrastructure domain.

Investment objective

The main objective of Franklin Build India Fund is to achieve long term capital appreciation by investing in companies which focus on infrastructure, financial services, social development, resources and agriculture to take advantage of their diverse experience.

Fund information

Inception dateSeptember 4, 2009
CRISIL rankFranklin Build India Fund has a CRISIL ranking of 1
Schemes
  • Growth
  • Dividend
  • Direct Growth
  • Direct Dividend
Entry loadNil
Exit loadFor redemptions within 2 years of allotment : 1%
Minimum investmentRs 5,000
SchemesHigh Risk product designed for investors looking for long term capital appreciation.
Entry loadCNX 500 + CNX Nifty
  • CNX 500 is a broad based benchmark of the Indian capital market representing 95.77% of free float market capitalization stocks on the NSE.
  • CNX Nifty is a diversified stock index which accounts for 23 sectors of the economy based on certain criteria.
Exit load
  • Rs 500 (subject to a minimum of 12 SIP investments of Rs 500 each)
  • Rs 1,000 (subject to a minimum of 6 SIP investments of Rs 1,000 each)
Minimum investment

Yes, SWP facility is available to those who have a minimum account balance of Rs 25,000.

Individuals can choose between a Monthly or quarterly mode, with an option to choose between fixed amount or capital appreciation.

Product label – Risk and target investorsYes, STP facility is available on either a monthly or quarterly basis. The transfer requires that any redeemed units need to be reinvested in another scheme.
Redemption

Minimum Redemption Amount – Rs 1,000.

Redemption proceeds will be sent to unitholders within 10 business days.

Taxation (on investment and on redemption)Investors need to consult their tax adviser to get a clear picture of tax implications under this scheme.

Fund managers

The Franklin Build India Fund has two fund managers Mr. Anand Radhakrishnan and Miss Roshi Jain.

Mr. Anand Radhakrishnan

Designation and Work
  • Mr. Radhakrishnan is the current Chief Investment Officer of Franklin Equity India and has over 20 years of experience in investment management. In his current position, he is responsible for all local equity funds and also doubles as a mentor for other portfolio managers.
  • He currently manages Franklin India Bluechip Fund, Franklin India Taxshield, Franklin India Prima Plus and Franklin India Infotech Fund.
  • He was previously the fund manager for Sundaram Mutual Fund for 8 years and a deputy manager at SBI Funds Management Limited.
Education
  • Mr. Radhakrishnan holds a PGDM from IIM Ahmedabad and a BTech Degree in Chemical Engineering from Anna University, Chennai.
  • He is also a Chartered Financial Analyst (CFA) charterholder.

Ms Roshi Jain

Designation and Work
  • Ms Roshi Jain is the Vice President of Portfolio Management Equity at Franklin Templeton India. She is also the portfolio manager for different funds including Franklin India Flexi Cap, Franklin India High Growth Companies Fund, Franklin Asia Equity Fund and Franklin Build India Fund, apart from being a co-portfolio manager for other funds.
  • Ms Jain has over a decade of experience in the investment field, having worked at Goldman Sachs before joining Franklin Templeton.
Education
  • Ms Jain is CFA Charter Holder, having earned it from the CFA Institute of USA.
  • Ms Jain also holds a PGDM from IIM Ahmedabad.

Investment philosophy or strategy

The investment strategy followed by Franklin Build India Fund is pretty simple and clear, with the main idea to invest in companies which are into infrastructure related activities. The fund aims to capitalise on innovative businesses and ideas and on stocks which have lost favour but have high potential for growth. It believes in orienting itself towards structural themes rather than cyclical themes in a bid to access companies across different ranges of market capitalization.

Portfolio – Sector / Top 10 holdings

CompanySectorPercentage
Maruti Suzuki India LtdAutomobile5.54
TVS Motor Company LtdAutomobile3.73
Axis Bank LtdBanks5.81
State Bank of IndiaBanks5.52
HDFC Bank LtdBanks5.49
ICICI Bank LtdBanks3.65
Whirlpool India LtdConsumer Durables3.56
Sanofi India LtdPharmaceuticals3.28
Idea cellular LtdTelecom Services5.07
Bharti Airtel LtdTelecom Services4.45

Risk measures – Last three years

The risk measures for various criteria are mentioned below. These are for the last three years.

Sharpe1.82
R-squared0.79
Beta1.07
Standard Deviation5.13

Performance

AUMRs 409.31 crore (as of May 29, 2015)
NAV (as of 01/09/2015)

Dividend – 20.64

Growth – 27.55

Direct Dividend – 21.23

Direct Growth – 28.28

Returns

The returns provided by Franklin Build India Fund in comparison to market returns are shown in the table below.

PeriodScheme returnsCNX 500CNX Nifty
March 2012 – March 201310.82%5.13%7.31%
March 2013 – March 201424.69%17.72%17.98%
March 2014- March 201584.95%33.56%26.65%

Expense Ratio

The Expense ratio of Franklin Build India Fund is mentioned in the table below.

Daily Net AssetsExpense ratio
First 100 crores2.83%
Next 300 crores2.58%
Next 300 crores2.33%
Remaining Balance2.08%

Expert view of the fund

Franklin Build India Fund has managed to hold its own over the last few years, performing better than most other similar funds. It is a high risk fund with portfolio in infrastructure companies which might boost its performance on the back of a developing India. The Fund Managers have managed to invest smartly, without any major setbacks till now. This is not a short term fund and it would pay to stay invested for the long run, with returns expected to grow after 4-5 years. The future of this fund looks stable, if it continues to perform the way it currently is.

How to apply – online + distributors

One can invest in Franklin India Build Fund either through the online medium or through distributors. Anyone who wishes to invest in the fund could log onto the official website of Franklin Templeton India and follow the basic steps mentioned. One needs to provide his/her PAN details, mobile number, email id, and bank details in order to register online.

Individuals can also apply through registered distributors like the MF branch or banks which are allowed to deal in such transactions. They are required to fill in an application form and enter relevant data about their scheme and then submit the form.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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