The Franklin India High Growth Companies Fund is an open ended equity fund with a focus on both top down and bottom up approach, utilizing both micro and macro analysis to strengthen its position. The fund primarily concentrates on high growth companies which have sustainable competitive advantages and is apt for investors who wish to diversify their investment portfolio.
Type or nature of fund
The Franklin India High Growth Companies Fund (FIHGCF) is an open ended diversified equity fund.
The primary objective of Franklin India High Growth Companies Fund is to achieve capital appreciation by investing in Indian companies which have a high growth potential.
|Inception date||July 26, 2007|
|CRISIL rank||FIHGCF has a mutual fund rank of 1|
|Exit load||The exit load is 1% for redemptions within two years of allotment.|
|Minimum investment||Rs 5,000|
|Product label – Risk and target investors||This is a moderately high risk product and is designed for investors looking for long term capital appreciation through funds which invest in companies with high growth potential.|
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.|
STP facility is available on a monthly or quarterly basis and redeemed units should 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)||Investors are advised to consult their tax advisers with regard to specific tax implications related to their participation in this scheme.|
The Franklin India High Growth Fund has two fund managers, Ms. Roshi Jain and Mr. Janakiraman Rengaraju.
Ms Roshi Jain
Designation and Work
- Ms Roshi Jain is the current Vice President of Portfolio Management Equity at Franklin Templeton India. She is also the portfolio manager for other funds including Franklin India Flexi Cap, Franklin Asia Equity Fund and Franklin Build India Fund, apart from being a co-portfolio manager for other assets.
- Ms Jain has 14 years of experience in this field, having worked at Goldman Sachs previously.
- Ms Jain did her CA from ICAI and also holds a PGDM from IIM Ahmedabad.
Mr. Janakiraman Rengaraju
Designation and Work
- Mr. Janakiraman Rengaraju is the Vice President of Portfolio Management Equity at Franklin Templeton India. In addition to this fund Mr. Rengaraju also handles other funds like the Franklin India Flexi Cap, Franklin India Prima Fund, Franklin India Opportunities Fund and the Franklin India Smaller Companies Fund.
- Mr. Rengaraju has been in the investment field for over 14 years, having worked with companies in Chennai and Mumbai before his current role.
- Mr. Rengaraju has a MBA from IIM Bangalore and a BE from Government College of Technology, Coimbatore.
Investment philosophy or strategy
The primary strategy employed by Franklin India High Growth Companies Fund is to invest in companies which have a fast growth potential and those which offer a perfect balance between risk, growth and valuation. It hopes to capitalise on the growing economy, where companies can offer excellent returns on investment thanks to better management, ownership of intellectual property and cost advantages.
Portfolio – Sector / Top 10 holdings
|HDFC Bank Ltd||Banking||5.98|
|State Bank of India||Banking||5.85|
|Tata Motors Ltd||Auto||5.83|
|ICICI Bank Ltd||Banking||5.60|
|Axis Bank Ltd||Banking||5.31|
|Maruti Suzuki India Ltd||Auto||5.18|
|Idea Cellular Ltd||Telecom Services||4.72|
|TVS Motor Company||Auto||4.70|
|Pantaloons Fashion and Retail Ltd||Retail||3.22|
The risk measures for various criteria over the last three years are mentioned in the table below.
|AUM||Rs 3345.16 crores (as of July 31, 2015)|
|NAV (as of 31/07/2015)||
Dividend – Rs 25.65
Growth – Rs 30.86
Direct Dividend – Rs 26.27
Direct Growth – Rs 31.59
The returns provided by Franklin India High Growth Companies Fund in comparison to market returns are shown in the table below.
|Period||Scheme returns||S&P CNX 500||S&P CNX Nifty|
|March 2014-March 2015||73.45%||33.56%||26.65%|
|March 2013-March 2014||24.75%||17.72%||17.98%|
|March 2012-March 2013||13.90%||5.13%||7.31%|
The Expense ratio of Franklin India High Growth Companies Fund is mentioned in the table below.
|Daily Net Assets||Expense ratio|
|First 100 crores||2.77%|
|Next 300 crores||2.52%|
|Next 300 crores||2.27%|
Expert view of the fund
Franklin India High Growth Fund has performed above par since its inception, cashing in on a booming economy and spurt in quality companies cropping up in India. This Fund has performed stronger than other similar funds offered by other organisations, indicating the thought process and foresight put into it by the fund managers. It could be a smart investment option for individuals looking to capitalise on the growth of new Indian companies in the future, albeit it is a long term investment and investors need to exhibit patience while investing in it.
How to apply – online + distributors
One can invest in a Franklin India High Growth Fund through both an online and offline platform. Individuals wishing to invest in this fund need to 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 a Franklin Templeton branch. 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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