Franklin India Prima Fund is an open ended growth scheme fund which invests in small and mid sized companies which have the potential to generate high wealth. This a a high risk investment, which also offers high returns, with the ability to generate high capital appreciation. This fund is suited for experienced investors who are not afraid to take risks.
Type or nature of fund
Franklin India Prima Fund is an open ended growth scheme fund.
The primary objective of Franklin India Prima Fund is to offer medium to long term capital appreciation on investments with a secondary objective of providing income to investors.
|Inception date||December 1, 1993|
|CRISIL rank||Franklin India Prima Fund is ranked 3 in Small and Mid-Cap Funds by CRISIL|
|Exit load||For redemptions within 1 year of allotment : 1%|
|Minimum investment||Rs 5,000|
|Product label – Risk and target investors||Moderately High Risk product designed for investors looking for long term capital appreciation through funds which invest in small and mid-cap stocks.|
|Benchmark + additional Benchmark||
CNX 500 + CNX Midcap
|SIP (Systematic Investment Plan)||
|SWP (Systematic Withdrawal Plan)||
Yes, investors can utilise SWP facility, provided they have a minimum account balance of Rs 25,000.
A monthly or quarterly option is available under SWP, with the freedom to choose between fixed amount and capital appreciation.
|STP (Systematic Transfer Plan)||Yes, STP facility is available for this fund and investors can opt for either a monthly or quarterly mode. Redeemed units need to be reinvested in another scheme.|
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 related to this scheme.|
The Franklin India Prima Fund has two fund managers, Ms. Roshi Jain and Mr. Janakiraman Rengaraju.
Ms Roshi JainDesignation and Work
- Ms Roshi Jain is currently the Vice President of Portfolio Management- Equity at Franklin Templeton India. She is a portfolio as well as co-portfolio manager for other funds like Franklin India Flexi Cap, Franklin Asia Equity Fund and Franklin Build India Fund.
- Ms Jain has over 14 years of experience in this industry, having worked at Goldman Sachs prior to her current role.
- Ms Jain holds a PGDM from IIM Ahmedabad, apart from completing her CA and CFA from globally acclaimed institutions.
Mr. Janakiraman RengarajuDesignation and Work
- Mr. Janakiraman Rengaraju is the Vice President of Portfolio Management - Equity at Franklin Templeton India and is also the fund manager for funds like Franklin India Flexi Cap, Franklin India Opportunities Fund and the Franklin India Smaller Companies Fund, among others.
- Mr. Rengaraju has been in this field for over 14 years, having worked with companies in Mumbai and Chennai before joining Franklin Templeton.
- Mr. Rengaraju holds a MBA degree from IIM Bangalore and a BE from Government College of Technology, Coimbatore.
Investment philosophy or strategy
The investment philosophy implemented by Franklin India Prima Fund is to identify companies which are in their nascent stage across different sectors and have a high potential for growth in the future. It aims to minimize risk by investing in companies across multiple sectors, diversifying its portfolio. This strategy is considered a high risk one but it is designed to offer higher returns on investment.
Portfolio – Sector / Top 10 holdings
|Yes Bank Ltd||Banking||4.36|
|Torrent Pharmaceuticals Ltd||Pharmaceuticals||3.13|
|FAG Bearings (India) Ltd||Industrial Products||2.85|
|Amara Raja Batteries Ltd||Auto Ancillaries||2.82|
|Finolex Cables Ltd||Industrial Products||2.76|
|HDFC Bank Ltd||Banking||2.73|
|IndusInd Bank Ltd||Banking||2.66|
|Axis Bank Ltd||Banking||2.49|
|Kansai Nerolac Paints Ltd||Consumer Non-Durables||2.36|
|Idea Cellular Ltd||Telecom Services||2.30|
Risk measures – Last three years
The risk measures for various criteria over the last three years are mentioned below.
|Sharpe ratio (Annualized)||1.90|
|AUM||Rs 3802.69 crores (as of July 31, 2015)|
|NAV (as of 02/09/2015)||
Dividend – 54.27
Growth – 641.27
Direct Dividend – 56.06
Direct Growth – 659.69
The returns provided by Franklin Prima Fund in comparison to market returns are shown in the table below.
|Period||Scheme returns||S&P CNX 500||S&P CNX Nifty|
|March 2012 – March 2013||13.18%||5.13%||7.31%|
|March 2013 – March 2014||23.81%||17.72%||17.98%|
|March 2014- March 2015||68.51%||33.56%||26.65%|
The Expense ratio of Franklin Prima Fund is mentioned in the table below.
|Daily Net Assets||Expense ratio|
|First 100 crores||2.85%|
|Next 300 crores||2.60%|
|Next 300 crores||2.35%|
|On Remaining Balance||2.10%|
Expert view of the fund
The Franklin India Prima Fund has performed decently since its inception in 1993, having garnered momentum over the last four years. This is a high risk fund and aims to provide greater returns and has managed to live up to its promise on most occasions. A smart investment policy and expert leadership have helped it to stay afloat in a highly competitive market, with the decision to invest in businesses with predictable returns strengthening this fund. Investments in this fund could make sense, provided one is ready to accept the risk factor involved and stay invested for a longer term.
How to apply – online + distributors
One can invest in Franklin India Prima Fund either through the online medium or through registered banks/off site 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 to register themselves. One needs to provide his/her PAN details, mobile number, email id, and bank details in order to complete the online registration.
Individuals can also apply through registered distributors like the MF branch or banks which are permitted to deal in such transactions. All one needs to do is fill in an application form and enter relevant data about their scheme and then submit the form to the appropriate branch.
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