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Franklin India Balanced Fund

The Franklin India Balanced Fund is a scheme which provides fund managers flexibility in asset allocation, with a majority of the investments being in equity assets. It provides long term capital appreciation and is a great investment option for those looking for good returns without thinking too much about risks.

Type or nature of fund

Franklin India Balanced Fund is an Open ended balanced scheme.

Investment objective

The primary objective of Franklin India Balanced Fund is to invest in equity and equity related securities to provide long term growth and appreciation of capital. It also aims to supplement income by investing in fixed income tools.

Fund information

Inception date December 10, 1999
CRISIL rank Crisil ranks the Franklin India Balanced Fund 2 in Balanced category
Schemes
  • Growth Plan
  • Dividend Plan (with Reinvestment and Payout options)
  • Direct Growth Plan
  • Direct Dividend Plan (with Reinvestment and Payout options)
Entry load Nil
Exit load 1% for redemptions within 1 year of allotment
Minimum investment Rs 5,000
Product label – Risk and target investors Moderately High Risk product designed for investors looking for long term capital appreciation with their current source of income through investments in stocks and fixed income tools.
Benchmark CRISIL Balanced Fund Index
  • The CRISIL Balanced Fund Index is a mix of the CNX Nifty Index and CRISIL Composite Bond Fund Index and tracks the performance of equity inclined hybrid portfolios.
SIP (Systematic Investment Plan)
  • Rs 500 (12 SIP investments worth Rs 500 each - minimum)
  • Rs 1,000 (6 SIP investments worth Rs 1,000 each - minimum)
SWP (Systematic Withdrawal Plan)

Yes. Available to investors with a minimum account balance of Rs 25,000.

Investors can opt for either a monthly or quarterly option , choosing between a fixed amount or capital appreciation.

STP (Systematic Transfer Plan) Yes. Investors can opt for STP through either a monthly or quarterly mode. Any Redeemed unit needs to be reinvested in another scheme.
Redemption Minimum Redemption Amount – Rs 1,000.
Taxation (on investment and on redemption) Investors need to consult their tax adviser to get a clear picture of the tax implications regarding their investment in this scheme.

Fund managers

Franklin India Balanced Fund has four fund managers, Mr. Anand Radhakrishnan, Mr. Anil Prabhudas, Mr. Sachin Shankar Padwal Desai and Mr. Umesh Sharma.

Mr. Anand Radhakrishnan

Designation and Work

  • Mr. Radhakrishnan is the Chief Investment Officer of Franklin Equity India and has over 20 years of experience in this field. He not only handles all local equity funds but also mentors other portfolio managers in his current role.
  • In addition to this fund he also manages Franklin India Taxshield, Franklin India Bluechip Fund, Franklin Build India Fund and Franklin India Infotech Fund.
  • Mr. Radhakrishnan was a fund manager at Sundaram Mutual Fund for 8 years and deputy manager at SBI Funds Management Limited before joining Franklin Templeton.

Education

  • Mr. Radhakrishnan holds a BTech Degree from Anna University, Chennai and a PGDM from IIM Ahmedabad.

Mr. Anil Prabhudas

Designation and Work

  • Mr. Anil Prabhudas is the Assistant Vice President and Senior Research Analyst at Franklin Templeton India and has over 20 years of experience in this field.
  • Mr. Prabhudas has been associated with multiple companies during his stellar career and is currently in charge of FCMG, commodities and consumer staples.
  • Mr. Prabhudas is the fund manager for the Sector Fund – FCMG, Tax Savings Fund and Benchmark Indices Funds apart from this fund.

Education

  • Mr. Rengaraju is a Chartered Accountant and also hold a Bachelors in Commerce from Bombay University.

Mr. Sachin Shankar Padwal Desai

Designation and Work

  • Mr. Desai is the Vice President of Fixed Income at Franklin Templeton India and is in charge of fixed income funds of locally managed and distributed debt products.
  • Mr. Desai has close to a decade of experience in banking and finance, having previously worked with ICICI Bank.

Education

  • Mr. Desai holds a PGDM from IIM, Bangalore and an engineering degree from Government College of Engineering, Pune.

Mr. Umesh Sharma

Designation and Work

  • Mr. Sharma is the Vice President of Fixed Income at Franklin Templeton India and is in charge of locally managed debt products.
  • Mr. Sharma has close to ten years of experience in this field, having worked in different financial companies.

Education

  • Mr. Sharma is a CFA Charterholder from USA, and is also a qualified Chartered Accountant and Company Secretary.

Investment philosophy or strategy

Franklin India Balanced Fund works towards using the flexibility offered by Balanced Funds in its favor. Fund managers split up the investment between equity and debt, depending on multiple factors. A poor correlation between equity and debt enable the fund to counter any sharp fluctuations in one asset class, with the overall risk reducing due to debt investments. This diversification in disciplines helps the fund achieve stronger risk adjusted returns.

Portfolio – Sector / Top 10 holdings

Debt Rating Percentage
7.68% GOI 2023 Sovereign 8.52
7.88% GOI 2030 Sovereign 8.42
7.72% GOI 2025 Sovereign 7.22
HPCL-Mittal Energy Ltd ICRA AA- 3.88
8.13% GOI 2045 Sovereign 1.59
Equity Sector Percentage
HDFC Bank Ltd Banking 5.64
Infosys Ltd Software 4.45
ICICI Bank Ltd Banking 3.17
IndusInd Bank Ltd Banking 2.91
Aditya Birla Nuvo Ltd Services 2.69

Risk measures – Last three years

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

Sharpe ratio (Annualized) 1.2
R-squared N/A
Beta N/A
Standard Deviation 11.41

Performance

AUM Rs 571.59 crores (as of July 31, 2015)
NAV (as of 03/09/2015)

Dividend – 21.23

Growth – 89.08

Direct Dividend – 21.69

Direct Growth – 90.77

Returns

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

Period Scheme returns CRISIL Balanced Fund Index S&P CNX Nifty
March 2012 – March 2013 7.21% 8.18% 7.31%
March 2013 – March 2014 18.62% 13.40% 17.98%
March 2014- March 2015 44.30% 22.66% 26.65%

Expense Ratio

The Expense ratio of Franklin India Balanced 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%
On Remaining Balance 2.08%

The current expense ratio is 2.54% for regular and 1.06% for direct (As of July 31, 2015).

Expert view of the fund

Franklin India Balanced Fund has performed relatively well since its inception, offering returns higher than market rates. The fund has improved its performance over the last three years, generating better opportunities for investors. A smart investment policy which looks at both debts and equities has helped this fund grow, albeit it is still subject to market trends. There is an element of risk involved in this fund and it is recommended that people remain patient with their investment to see good returns.

How to apply – online + distributors

Individuals can choose between an online medium or the traditional offline medium to register for this plan. Individuals who wish to register online need to log onto the official website of Franklin Templeton India and follow a few basic steps. They are required to provide their mobile numbers, email id, PAN details and bank details in order to successfully register.

The offline registration process entails one to approach an authorised distributor and fill up an application form providing all relevant information.

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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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