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Franklin India Bluechip Fund

Franklin India Bluechip Fund is an open ended equity fund which primarily focuses on large cap companies with strong financials, ensuring it has a diverse portfolio of stocks. The primary idea of this fund is to invest in companies with strong fundamentals, with secondary outlook to momentum, which is suited for investors with at least 3 years to spare.

Type or nature of fund

Franklin India Bluechip Fund is an open end growth fund.

Investment objective

The primary objective of Franklin India Bluechip Fund is to provide medium to long term capital appreciation for investors.

Fund information

Inception date December 1, 1993
CRISIL rank Franklin India Bluechip Fund has a CRISIL rank of 1 in Mutual Funds
Schemes
  • Growth Plan
  • Dividend Plan
  • Direct Growth Plan
  • Direct Dividend Plan
Entry load Nil
Exit load The exit load is 1% for redemptions within one year of allotment.
Minimum investment Rs 5,000
Product label – Risk and target investors This is a moderately high risk product designed for investors who are looking for long term capital appreciation through funds which invest in large cap stocks.
Benchmark S&P BSE Sensex
  • S&P BSE Sensex is a stock market index of 30 popular companies listed on the Bombay Stock Exchange.
SIP
  • 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)
SWP

Yes, SWP facility is available to investors having a minimum account balance of Rs 25,000.

Individuals can opt for either a Monthly or quarterly mode, with the option to choose between fixed amount or capital appreciation.

STP

Yes.

STP facility is available on a monthly or quarterly basis. Redeemed units need to be reinvested in another scheme under STP.

Redemption

Minimum Redemption Amount – Rs 1,000.

This amount will be sent to an investor within ten working days.

Taxation (on investment and on redemption) Taxation will differ for different investors based on income and nature of fund. It is recommended to consult a financial adviser to get clear guidelines.

Fund managers

The Franklin India Bluechip Fund has two fund managers Mr. Anand Radhakrishnan and Mr. Anand Vasudevan.

Mr. Anand Radhakrishnan

Designation and Work
  • Mr. Radhakrishnan is the current Chief Investment Officer of Franklin Equity India and has been in the field of investment management for over 20 years. In his current position, he is responsible for all local equity funds and is also a mentor for other portfolio managers.
  • He currently manages Franklin India Bluechip Fund, Franklin India Taxshield, Franklin Build India Fund, Franklin India Prima Plus and Franklin India Infotech Fund.
  • Mr. Radhakrishnan was previously the fund manager for Sundaram Mutual Fund for 8 years and a deputy manager at SBI Funds Management Limited before joining his current organisation.
Education
  • Mr. Radhakrishnan has a PGDM from IIM Ahmedabad and a BTech Degree from Anna University, Chennai.

Mr. Anand Vasudevan

Designation and Work
  • Mr. Anand Vasudevan is a Senior Vice President and Head of Research at Franklin Templeton India, having close to 18 years of experience in this field. In his current role he is responsible for improvements in research, information dissemination and stock recommendations.
  • Mr. Vasudevan was previously associated with Keefe, Bruyette and Woods before joining Franklin Templeton.
Education
  • Mr. Vasudevan has a Master’s degree in Finance from the London School of Business, apart from holding a PGDM from IIM, Calcutta.

Investment philosophy or strategy

The main strategy employed by Franklin India Bluechip Fund is to invest in large cap stocks which are financially sound and stable to provide a solid foundation to an investor’s portfolio. The Fund looks to ensure that it has sufficient diversification, both across sectors and across stocks from within a particular sector.

Portfolio – Sector / Top 10 holdings

Company Sector Percentage
HDFC Bank Ltd Banking 7.81
Infosys Ltd Software 6.34
ICICI Bank Ltd Banking 5.21
Cognizant Technology Solutions Corp. Software 4.64
IndusInd Bank Ltd Banking 4.43
Bharti Airtel Ltd Telecom Services 4.43
Dr Reddy’s Laboratories Ltd Pharmaceuticals 3.69
L&T Ltd Construction 3.25
Yes Bank Ltd Banking 3.13
Reliance Industries Ltd Petroleum 3.03

Risk measures – Last three years

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

Sharpe 0.95
R-squared 0.85
Beta 1.01
Standard Deviation 3.99

Performance

AUM Rs 6622.45 crore (as of July 31, 2015)
NAV (as of 31/07/2015)

Dividend – Rs 43.09

Growth – Rs 367.87

Direct Dividend – Rs 44.12

Direct Growth – Rs 375.55

Returns

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

Period Scheme returns BSE Sensex S&P CNX Nifty
March 2014-March 2015 36.28% 25.15% 26.65%
March 2013-March 2014 15.76% 18.85% 17.98%
March 2012-March 2013 5.66% 8.23% 7.31%

Expense Ratio

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

Daily Net Assets Expense ratio
First 100 crores 2.84%
Next 300 crores 2.59%
Next 300 crores 2.34%
Remaining Balance 2.09%

Expert view of the fund

Franklin India Bluechip Fund has remained strong since its inception over 20 years back. Its focus on large cap stocks have helped it stay strong, offering better results compared to its benchmark. It is a smart choice for investors looking to stabilise their investment portfolio, thanks to its proven ability to deliver steady returns. It is worth a look for investors who are looking at long term investments of over 5 years, although market conditions can have the final say in its performance.

How to apply – online + distributors

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

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

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