Franklin India Prima Plus is a fund designed to provide investors access to some of the fastest growing companies in the country, without increasing the risk factor involved. It invests primarily in large cap stocks with limited exposure to small and mid cap stocks, and is perfect for those with a low risk appetite.
Type or nature of fund
Franklin India Prima Plus is an open ended growth scheme fund.
Investment objective
The primary objective of Franklin India Prima Plus is to ensure there is growth of capital and regular dividend by investing in a diverse equity portfolio, money market instruments and fixed income securities.
Fund information
| Inception date | September 29, 1994 |
| CRISIL rank | Crisil ranks Franklin India Prima Plus 2 in Diversified Equity |
| Schemes |
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| 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 through a large cap fund which also invests in small and medium cap stocks. |
| Benchmark |
CNX 500
|
| SIP (Systematic Investment Plan) |
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| SWP (Systematic Withdrawal Plan) |
Yes. Available to investors with a minimum account balance of Rs 25,000. A monthly or quarterly option is available under SWP, with the option to choose between a fixed amount or capital appreciation. |
| STP (Systematic Transfer Plan) | Yes. Investors can opt for STP through either a monthly or quarterly mode. Redeemed units need to be reinvested in another scheme. |
| Redemption |
Minimum Redemption Amount – Rs 1,000. Redemption proceeds will be sent to investors within 10 business days. |
| Taxation (on investment and on redemption) | Investors need to consult their tax adviser with regard to tax implications related to this scheme. |
Franklin India Prima Plus has two fund managers, Mr. Anand Radhakrishnan and Mr. Janakiraman Rengaraju.
Mr. Anand Radhakrishnan
Designation and Work- Mr. Radhakrishnan is the Chief Investment Officer of Franklin Equity India and has been in this field for over 20 years. He is responsible for all local equity funds and is a mentor for other portfolio managers in his current role.
- In addition to this fund he also manages Franklin India Bluechip Fund, Franklin India Taxshield, Franklin Build India Fund and Franklin India Infotech Fund.
- Mr. Radhakrishnan was the fund manager at Sundaram Mutual Fund for 8 years and a deputy manager at SBI Funds Management Limited before joining Franklin Templeton.
- Mr. Radhakrishnan has a BTech Degree from Anna University, Chennai and 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 and is also the fund manager for Franklin India Flexi Cap, Franklin India Opportunities Fund and Franklin India Smaller Companies Fund, among others.
- Mr. Rengaraju has been in the current 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 Bachelor of Engineering degree from Government College of Technology, Coimbatore.
Investment philosophy or strategy
Franklin India Prima Plus follows a strategy wherein it invests in wealth generating companies which can offer high returns on capital. It seeks to invest in large-cap stocks to improve the growth capacity of its portfolio without pushing up the risk factor.
Portfolio – Sector / Top 10 holdings
| Company | Sector | Percentage |
| HDFC bank Ltd | Banking | 6.87 |
| Infosys Ltd | Software | 4.71 |
| ICICI Bank Ltd | Banking | 4.18 |
| Bharti Airtel Ltd | Telecom Services | 3.85 |
| IndusInd Bank Ltd | Banking | 3.67 |
| Dr Reddy's Laboratories Ltd | Pharmaceuticals | 3.1 |
| Yes Bank Ltd | Banking | 2.95 |
| Torrent Pharmaceuticals Ltd | Pharmaceuticals | 2.42 |
| Kotak Mahindra Bank Ltd | Banking | 2.32 |
| Axis Bank Ltd | Banking | 2.17 |
Risk measures – Last three years
The risk measures for various criteria over the last three years are mentioned below.
| Sharpe ratio (Annualized) | 1.53 |
| R-squared | 0.87 |
| Beta | 0.87 |
| Standard Deviation | 3.9 |
Performance
| AUM | Rs 5058.73 crores (as of July 31, 2015) |
| NAV (as of 02/09/2015) |
Dividend – 35.45 Growth – 426.07 Direct Dividend – 36.27 Direct Growth – 435.17 |
Returns
The returns provided by Franklin Prima Plus 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 | 7.84% | 5.13% | 7.31% |
| March 2013 – March 2014 | 21.45% | 17.72% | 17.98% |
| March 2014- March 2015 | 53.17% | 33.56% | 26.65% |
Expense Ratio
The Expense ratio of Franklin Prima Plus is mentioned in the table below.
| Daily Net Assets | Expense ratio |
| First 100 crores | 2.80% |
| Next 300 crores | 2.55% |
| Next 300 crores | 2.30% |
| On Remaining Balance | 2.05% |
Expert view of the fund
Franklin India Prima Plus has been around for more than 20 years and has held its own during this period. The fund has offered good returns even during recession, showcasing the smart investment decisions made by its fund managers. Performance results have dropped in recent times but still continue to be better than most peers. This could be a good option for investors looking for returns in the long run, regardless of its tag as a moderately high risk product.
How to apply – online + distributors
One can invest in Franklin India Prima Plus either through the online medium or through authorised banks/off site distributors. People wishing to invest in this fund need to log onto the official website of Franklin Templeton India and follow the basic steps mentioned to register themselves. They need to provide their PAN details, mobile number, email id and bank details to complete the online registration.
Individuals can also apply through registered distributors like the MF branch or banks which are authorised to deal in such transactions. All they needs to do is fill in an application form and enter relevant data about their scheme and submit it to the appropriate branch.
