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

review

of

mutual

fund

s. Let me first explain the methodology of the

review

. We will list and review the

fund

based on various parameters and rate each parameter based on green, yellow or red star means. good performance yellow star means average performance and red means below average performance in the end, based on the total number of green, yellow and red stars respectively, you can take a call to buy this fund or not, remember all the fun parameters that we are going to analyze.

Here they are based on data as of April 21, 2017 for reference and we only review regular and growth plans of

mutual

funds

. In this video we are going to review the fund called Franklin India prime of 1 which is a small cap fund launched in 1993 before moving on to the review. Understand the objectives of the fund, the fund invests

prima

rily in stocks and is an ideal fund for long-term capital appreciation. Invests in large and mid-cap companies in India. Now let's first start with the detailed review of each parameter. The fund belongs to the Franklin Templeton family of mutual

funds

, which is currently the eighth largest fund in India, the house in terms of effect under management among more than 45 for houses and was established in 1996, so, for Being a very large and experienced main house, we give it a green star here.

The first fund was launched in December 1993. This means it is active for more than 23 years and is the oldest active mid-cap fund started by Qatari pioneers which later became ITI pioneer and was acquired by Franklin in 2002, so let's give it a green star here, for being a very experienced fund. The fund, which has seen ups and downs across markets, is classified in the mid-cap category. There is no fixed definition of midcap, but companies with a market capitalization of Rs 5,000 crore to Rs 20,000 crore are mostly considered. Now moving on to the next, this background has a great effect. based on the management of 5 3 8 9 Crows and ranks as the fourth largest actively managed mid-cap fund among a population of 30+ people as categorized by value research, so this high asset under management speaks volumes on the consistent performance of funds and investor confidence in fund management. therefore, it deserves a green star.

Now let's talk about money, that is, returns. We will first talk about trailing returns since the April 21 date and then talk about calendar returns. In the final returns we can see that the fund has consistently outperformed its benchmark index. is NSC 500, as well as the average of the mid-cap category in one, three, five and ten years. The performance performance clearly shows an exceptional performance of the fund and especially the five-year performance is outstanding and is among the top five in the category that now analyzes the calendar ice returns of In the last ten years, from 2007 to 2016, meaning returns from the first channel to December of a calendar year, we see that there have been two cases where the fund was outperformed by both the benchmark index and the category average, i.e. in 2007 and 2008, and both were very bad years.

For the fund, there were excellent performances, such as in 2009 12 2013 14 and 2016, where they achieved both benchmark and category average returns by a good margin in the 2008 and 2011 beer markets. The calendar year performance of all funds is pretty good as they have outperformed both the benchmark and the category average six out of ten times and most of them are recent years so they clearly have very good return performance, some recent exceptional performances in the calendar, but they are not able to manage the declines in the beer market too well, which makes us give them a green and a yellow star for performance.

The next important parameter is the fund manager. The fund is managed by a popular mid-cap fund manager, our salmon John Key since February 2008. He has an MBA from I am Bangalore and I am also a CFA. John is a veteran at Franklin DT and has been with them for almost a decade. He also runs the popular Franklin small-cap fund. Franklin India's smaller companies fund since February 2008, this also has close to Rs 5,000 crore under management, it also manages its flagship

equity

fund Franklin primer + fund, which is a multi-cap fund since February 2011, along with its stock CIO at Radha Krishna.

It has more than ten billion rupees under management. It is also part. of a management team of Franklin Flexi Cap fund, which is a multi-cap fund with close to Rs 3,000 crore in assets as of March 2014, and Taxi'll Phone since May 2016, which is an ELSS fund, all these funds he manages have performed very well and are among category leaders in long-term performance, i.e. 5 and 10 years, tracking returns. John is supported by another fund manager, Harish am sundar, who is an IIM Bangalore MBA and CFA graduate 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 leading the group and a pretty good performance since he joined, we'll give this parameter a green stop. The next parameter is the top stock holdings of the fund and understanding the diversification of the fund as on April 21 there were 63. Stocks in the portfolio, top 5 contributing about 16%. The current cash allocation is less than 8% and the rest is all in

equity

funds. It has very good diversification in the portfolio and the holding age of the top five companies is very close to our red cap benchmark of 15% and hence we give this parameter a green star.

The next parameter is the diversification of the sector. The top 3 sectors contribute about 42% with the maximum weight being 24% for the financial sector. Due to this contribution from the well-diversified sector, 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 load is 1% if the investment is redeemed and reinforced 365 days, which is what most medium limits to look at funds of similar size, surely have some room to reduce the index of expenses and therefore we give this parameter a yellow star.

Now those who like numbers let us discuss some important indices with respect to standard deviation, a measure of volatility and risk is lower than the category but higher than the benchmark which means it takes less risk than its peers' beta-2 is a measure of risk and is also lower than the alpha category which measures risk-adjusted returns, so 16.1 alpha means it can perform 16.1% better than the benchmark Therefore, even taking on lower risk, it has better alpha, i.e. return potential, than the category, meaning this fund has a moderately low risk and high return profile. The portfolio's Nash P ratio is 23.5 and is lower than the p/e benchmarks of 27.1, so the fund is clearly a moderately low-risk, high-return category funded by good P and Therefore, it deserves the eco-friendly material.

Another important information to note about the fund is that it is a mid-cap focused fund and therefore has about 70% investments in Mid-Caps Only and the rest

prima

rily in Large-Caps. and this table shows how this 10,000 if P would have performed over various time periods and with outstanding performance and what amazing returns this fund has delivered on a continuous basis, so if we calculate, we got a total of eight green stars and two. Yellow stars with not so good performance during beer markets are the main concern to summarize. Franklin

india

primer fund is a veteran, an oldest small cap category fund with more than 23 years of history.

It is a mid-cap focused fund with almost no allocation to small caps. and only 30 percent in large caps one has had a consistent performance over the last six seven years comfortably outperforming both the benchmark index and the category the rocky starts between 2006 and 2008, but made a good recovery funds in market declines is not great and the performance in 2008 was The point of oblivion is being managed by our trash ramen, a well-known name in the small and mid-cap segment. Mid-cap segments mean unpredictability and then there are other factors like liquidity constraints, limited coverage and poor information disclosure that make small and mid-cap investing challenging, hence the need for a skilled manager and is necessary. install a very good humidification process, which this fund has done in an exemplary manner with Janki, name it with a solid history, good performance, an experienced manager and a very process-oriented facade make this fund. a must on your list of mid-cap funds, which is all we have on this topic.

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