Mutual Fund Review: Franklin India Prima Fund | Franklin Mutual Fund | Top Mid Cap Equity Funds

hello everyone, welcome to your new investment academy, today we are going to do a

mutual

fund

review

, first let me explain the

review

methodology, we will list and review the

fund

on various parameters and rate each parameter with a green, yellow or red, one green star means good performance yellow star means average performance and red means below average performance at the end based on the total number of green, yellow and red stars respectively, you can call to buy this fund or not, please remember all the fun parameters that we are going to discuss here are based on the data from April 21, 2017 for reference and we only review the regular and growth plans of the

mutual

funds

in this video we are going to review the fund called Franklin India prime of 1 which is a bit capitalization fund launched in 1993 before going into review, let's understand the objectives of the

funds

the fund invests

prima

rily in equities and is an ideal fund for long-term capital appreciation now invests in large and mid cap companies in India let's start the detailed review of each parameter first the fund belongs to the

franklin

templeton family of mutual funds, which is currently the 8th largest fund in India the house in terms of effect under management of over 45 for houses and was established in 1996 so being a very large and very experienced head house we give it one star Green Here First Fund was launched in December 1993, which means it has been active for over 23 years and is the oldest active mid-cap fund started by Qatari pioneers which later became ITI pioneers and was acquired by Franklin back in 2002 so we're going to give it a green star here because it's a very experienced fund that has seen all the markets up and down the fund is categorized in the c mid-cap category there is no fixed definition of mid-cap but mostly consider companies between the market capitalization of rupees 5000 to rupees 20 000 crore now moving to the next fund has a big effect on the management of 5 3 8 9 Crows and ranks as the fourth actively managed mid-cap fund among a population of over 30 according to Value Research categorization, so this top asset under management speaks volumes about consistent fund performance and investors trust in fund management therefore deserves a green star now let's talk about the money which is the returns we'll talk first.

Looking at the final returns since the April 21 date and then let's talk about the calendar returns in the final returns, we can see that the fund has consistently outperformed its benchmark, which is the NSC 500, as well as the category average for mid cap on three, five and ten year trailing performance the performance clearly shows exceptional fund performance and especially the five year trailing performance is outstanding and ranks in the top five in the category now looking at the returns of the calendar ice for the last ten years, from 2007 to 2016, which means yields from the first channel through December of a calendar year.

We see there have been two instances where the fund was outperformed by both the benchmark and the category average, that is, in 2007. 2008 and both were very bad years for the fund, then there were some good results like in 2009, 12, 2013, 14, and 2016, in which they had both benchmark and category average returns with a good margin in the 2008 and 2011 beer markets. The point has hit below average. and average return respectively looking now at this hole the calendar year performance of all the funds is pretty good as they have outperformed the benchmark and category average six times out of ten and most of them are recent years, so clearly they have some very good bottom line return performance, some exceptional recent calendar returns, but they are not able to handle beer market downturns very well, forcing us to give them a green star and a green star. yellow for performance.

The next important parameter is the fund manager. The fund is run by a popular small mid-cap fund manager, John Key. salmon since feb 2008 is an MBA from I am Bangalore and is also a CFA John is the veteran at

franklin

's DT and has been with them for almost a decade n He also runs the popular Franklin small cap fund Franklin India the venture fund smaller since February 2008. This one also has about Rs 5000 crore as it is under management. along with his

equity

CIO at Radha Krishna, he has over Rs 10 crore under management, he is also part of a management team of Franklin flex fund which is a multi-cap fund with close to 3 billion AUM rupees since March 2014 and taxi'll phone since May 2016, which is an ELSS fund.

All of these funds that he manages have performed very well and are among the top of the category in long-term returns, meaning 5 and 10 years of tracking returns. John is backed by another fund manager Harish am sundar who is: Graduated from IIM Bangalore MBA and CFA and joined Franklin in 2007 as a Research Analyst. He joined this fund management team last year only in May 2016 with an experienced manager like John Kellerman at the helm. e fold and pretty good performance since he joined, we'll give this parameter a green stop. The next metric is the top stock holdings of the fund and understanding the diversification of the funds as as of April 21 one has 63 stocks in the portfolio with the top 5 contributing close to only 16% of the current cash allocation is less at 8% and the rest is in shares.

The fund is very well diversified across the portfolio and the waiting age for the top five companies is very close to our 15% red capitalization benchmark and therefore we give this metric a green star. The next parameter is the diversification of the sector. The top 3 sectors contribute close to 42% with a maximum weighting of 24% for the financial sector due to this well diversified sector contribution. We give this parameter to a green material. Next, our fund expense ratio is 2.3 6. % which is close to the average expense ratio for this category which is 2.4 7% the fund's exit charge is 1% if the investment is redeemed bolstered 365 days in which is what most midcaps look for in simi large funds surely have some room to reduce the expense ratio and so we give this parameter a yellow star now, those to which they like numbers, let's look at some important relationships with standard deviation, a measure of volatility and risk is lower than category but higher than benchmark, meaning you take less risk than beta-2 pairs, is a measure of risk and it is also lower than the alpha category which measures risk adjusted returns so 16.1 alpha means you can perform 16.1% better than the benchmark so even taking less risk go has better alpha which is return potential than category, so this means this fund is a moderately low-risk, high-return fund The Nash P ratio of the portfolio, which is 23.5 and is more It is lower than benchmark P/E indices of 27.1, so the fund is clearly a P-good funded with a moderately low risk, high return category and therefore deserves the green stuff.

Other important information to note about the fund is that it is a mid-calf focused fund and therefore has to lose up to 70% of investments in mid-caps alone and rest mostly in large-caps and this The table shows how these 10,000 if P would have performed over various time frames and outstanding performance and what amazing returns this fund has consistently delivered so if we calculated we got a total of eight green stars and two yellow stars with no performance so good during beer markets being the main concern to sum up franklin

india

primer fund is an older veteran bit cap fund with over 23 years of history is a focused mid-cap fund with almost no allocation to small companies cap and only 30 percent in large-cap companies one has performed consistently in the last six seven years comfortably outperforming both the benchmark and the category the rough starts of the heater between 2006 and 2008 but had a good recovery the performance of the funds in market dips is not great and the performance in 2008 was a forgotten spot is being managed by our ramen addict a well known name in small and mid cap static mid cap segments mean the unforeseen dictability and then there are other factors such as liquidity squeeze limited coverage and poor disclosure of information, which makes small and mid cap investing challenging, therefore you need to have a trained manager and you have to put in place a very good wetting process which this fund has done in an exemplary way. with Janki, nominate Strong track record Good performance An experienced manager and a very process-oriented front house make this fund a must-have on your mid-cap fund list.

That's all we have on this topic. If you have any questions, write them in the comment. section below and don't forget to subscribe to our channel have a great day ahead