The Franklin India Smaller Companies Fund is an open ended diversified equity fund with the primary objective of providing long term capital appreciation. It invests predominantly in small and mid cap companies, following a bottom up approach to diversify its portfolio. This is best suited for investors who can wait for at least 3 years and those who can handle higher risk.
Type or nature of fund
The Franklin India Smaller Companies Fund (FISCF) is an open ended diversified equity fund.
The primary objective of Franklin India Smaller Companies Fund is to provide long term capital appreciation on investments by investing in small and mid cap companies.
Close ended scheme - January 13, 2006
Open ended scheme – January 14, 2011
|CRISIL rank||FISCF is ranked 2 in the mid and small cap segment|
|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 high risk product and is designed for investors looking for long term capital appreciation through funds which invest in small and mid cap companies.|
Yes, SWP facility is available to unitholders who have a minimum account balance of Rs 25,000.
They can opt for either a Monthly or quarterly mode.
STP facility is available on a monthly or quarterly basis. All redeemed units should be reinvested in another scheme under STP.
Minimum Redemption Amount – Rs 1,000.
This amount will be sent to an unitholder within ten working days.
|Taxation (on investment and on redemption)||Investors are advised to consult their tax advisers regarding specific tax implications related to their participation in this scheme.|
The Franklin India Smaller Companies Fund has two fund managers, Ms. Roshi Jain and Mr. Janakiraman Rengaraju.
Mr. Janakiraman RengarajuDesignation and Work
- The Vice President of Portfolio Management Equity at Franklin Templeton India, Mr Rengaraju is also the fund manager for multiple funds like the Franklin India Flexi Cap, Franklin India Prima Fund, Franklin India Opportunities Fund and the Franklin India High Growth Companies Fund.
- Mr. Rengaraju has been in the investment field for over 14 years, having worked with Indian Syntas group and UTI Securities before joining Franklin Templeton.
- Mr. Rengaraju is a MBA from IIM Bangalore, a BE from Government College of Technology, Coimbatore and is also a CFA Charterholder.
Ms Roshi JainDesignation and Work
- Ms Roshi Jain is the Vice President of Portfolio Management - Equity at Franklin Templeton India. Apart from handling this fund, Ms Jain is also the portfolio manager for other funds like Franklin India Flexi Cap, Franklin Asia Equity Fund and Franklin Build India Fund.
- Ms Jain has been in this field for the last 14 years, having worked with Goldman Sachs previously. Education
- Ms Jain did her CA from ICAI, PGDM from IIM Ahmedabad and is a CFA Charterholder.
Investment philosophy or strategy
The main strategy employed by Franklin India Smaller Companies Fund is to utilise the potential of small and mid cap companies which could ride the economic boom in the country. Companies which are likely to prosper during this period are going to catch the eye of FISCF. The fund attempts to diversify its investments by following a bottom-up approach, covering different sectors and minimising risk.
Portfolio – Sector / Top 10 holdings
|Finolex Cables Ltd||Industrial Products||3.12|
|Yes Bank Ltd||Banking||3.04|
|Axis Bank Ltd||Banking||2.4|
|FAG Bearings (India) Ltd||Industrial Products||2.39|
|Himatsingka Seide Ltd||Textile Products||2.37|
|HDFC Bank Ltd||Banking||2.36|
|Greaver Cotton Ltd||Industrial Products||2.18|
|Karur Vysya Bank Ltd||Banking||2.16|
|Repco Home Finance Ltd||Finance||2.07|
|Tata Motors Ltd||Auto||2.03|
The risk measures for various criteria over the last three years are mentioned in the table below.
|Annualised Sharpe Ratio||2.25|
|AUM||Rs 2273.17 crores (as of May 29, 2015)|
|NAV (as of 31/07/2015)||
Dividend – Rs 24.78
Growth – Rs 38.64
Direct Dividend - Rs 25.37
Direct Growth – Rs 39.46
The returns provided by Franklin India Smaller Companies Fund in comparison to market returns are shown in the table below.
|Period||Scheme returns||S&P CNX Midcap||S&P CNX Nifty|
|March 2014-March 2015||77.23%||50.96%||26.65%|
|March 2013-March 2014||37.90%||16.36%||17.98%|
|March 2012-March 2013||15.11%||-4.02%||7.31%|
The Expense ratio of Franklin India Smaller Companies 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%|
Expert view of the fund
Franklin India Smaller Companies Fund has changed from a closed ended scheme to an open ended one since its first launch 9 years ago. The scheme, in its current avatar is suitable for individuals who are not afraid of high risks investments, offering a tactical exposure opportunity to investors. The fund has performed consistently well over the last few years, providing good returns on investment. Smart investment strategy implemented by fund managers have helped it achieve its goal, and it could be a good investment option for individuals looking for long term returns.
How to apply – online + distributors
Individuals wishing to invest in Franklin India Smaller Companies Fund can choose between an online and offline platform. The online investment option can be done by logging onto the official website of Franklin Templeton India and following the basic steps mentioned there. One is required to provide his/her PAN details, mobile number and bank details in order to successfully register online.
Individuals can also apply through a Franklin Templeton branch/or an authorised bank. They need to fill out an application form and provide relevant data about their scheme before submitting tit.
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