The fund primarily focuses on providing medium to long-term capital appreciation through investments made in midcap stocks. The secondary objective of this fund is to generate income for unitholders.
Following the 2017 SEBI guidelines, Franklin India Prima fund was converted into Franklin India Equity Fund. The fund is in the midcap category. The fund has been experienced in the category for over a decade and has been able to climb in the past in terms of rankings.
The fund has about one-fourth of its allocation to large-cap stocks, and the rest is in the small-cap category in mid-cap and marginal allocations.
Franklin India prima fund managers aim
Fund managers aim to invest in companies that have a competitive advantage and are likely to offer better capital returns. Emphasis is placed more on the ability to generate future cash flows on an ongoing basis.
While the fund has a five-year and above return average and a few percentage points ahead of the benchmark category, the fund has experienced high volatility over the past three years, resulting in its ranking slipping.
If you are looking for long-term returns, we think you should look at the fund due to its higher outperformance. A team of three fund managers – Anand Radhakrishnan, Janakiraman Rengaraju, Srikesh Nair – is efficiently managing the scheme.
Janakiraman has run it for over ten years. He has more than 21 years of industry experience. Hari Shyamsunder has 13 years of experience and is responsible for investment and fund management of the scheme.
Srikesh Nair, who has more than seven years of experience, is the founder of the scheme, which is dedicated to international funds.
Is it ideal to invest in Franklin India Prima Fund – Growth?
The fund is mainly intended for long term capital appreciation through equity investment. Individuals can use it to create long-term capital for their children for various purposes, such as retirement or education. The fund has seen a growth of over 25 percent in the last five years.
As the fund aims to identify companies at an early stage of their life cycle, it has the potential to grow solidly. It is also noteworthy that the fund’s distribution scheme has regularly declared dividends for the last 20 years.
The fund mainly focuses on investing in mid-cap companies that show higher growth rates than well-established large corporations.
The aim is to identify companies in the early phase of the business life cycle as they have a more significant potential for growth.
The fund has consistently declared a dividend every year for the last 20 years.
Note: If you need to redeem your investment in less than seven years, do not invest in this or any other mid-cap fund.
Conclusion: It is a fund that invests in medium-sized enterprises. As the stock value falls, these funds tend to decrease more than those investing in large companies. And you should expect higher long-term returns, although more severe fluctuations along the way.