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 date | September 4, 2009 |
| CRISIL rank | Franklin Build India Fund has a CRISIL ranking of 1 |
| Schemes |
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| Entry load | Nil |
| Exit load | For redemptions within 2 years of allotment : 1% |
| Minimum investment | Rs 5,000 |
| Schemes | High Risk product designed for investors looking for long term capital appreciation. |
| Entry load | CNX 500 + CNX Nifty
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| Exit load |
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| 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 investors | Yes, 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.
- 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.
- 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
| Company | Sector | Percentage |
| Maruti Suzuki India Ltd | Automobile | 5.54 |
| TVS Motor Company Ltd | Automobile | 3.73 |
| Axis Bank Ltd | Banks | 5.81 |
| State Bank of India | Banks | 5.52 |
| HDFC Bank Ltd | Banks | 5.49 |
| ICICI Bank Ltd | Banks | 3.65 |
| Whirlpool India Ltd | Consumer Durables | 3.56 |
| Sanofi India Ltd | Pharmaceuticals | 3.28 |
| Idea cellular Ltd | Telecom Services | 5.07 |
| Bharti Airtel Ltd | Telecom Services | 4.45 |
Risk measures – Last three years
The risk measures for various criteria are mentioned below. These are for the last three years.
| Sharpe | 1.82 |
| R-squared | 0.79 |
| Beta | 1.07 |
| Standard Deviation | 5.13 |
Performance
| AUM | Rs 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.
| Period | Scheme returns | CNX 500 | CNX Nifty |
| March 2012 – March 2013 | 10.82% | 5.13% | 7.31% |
| March 2013 – March 2014 | 24.69% | 17.72% | 17.98% |
| March 2014- March 2015 | 84.95% | 33.56% | 26.65% |
Expense Ratio
The Expense ratio of Franklin Build India Fund is mentioned in the table below.
| Daily Net Assets | Expense ratio |
| First 100 crores | 2.83% |
| Next 300 crores | 2.58% |
| Next 300 crores | 2.33% |
| Remaining Balance | 2.08% |
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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