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

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

let me first explain the methodology of the

review

we will list and

review

the

fund

on various parameters and rate each parameter by green yellow or red star green 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 star respectively you can take a call to buy this

fund

or not please
mutual fund review franklin india prima fund franklin mutual fund top mid cap equity funds
remember all the fun parameters we are going to discuss here are based on 21st April 2017 data as reference and we only

review

regular and growth plans of

mutual

fund

s in this video we are going to

review

fund

named

Franklin

India

prime of 1 which is a bit cap

fund

launched in 1993 before going into

review

let's understand about

fund

s objectives the

fund

invests

prima

rily in

equity

stocks and is ideal

fund

for long term capital appreciation it invests in mid and large cap companies in

India

now let's start the detailed

review

on each parameter first the

fund

belongs to

franklin

templeton

mutual

fund

family which is currently

India

's 8th biggest

fund

the house in terms of effect under management out of more than 45 for houses and was established in 1996 so for being a very large and very experienced front house we give a green star here primer

fund

was launched in December 1993 this means it is active for more than 23 years now and is the oldest active mid-cap

fund

started
by Qatari pioneers which then became pioneer iti and was acquired by

Franklin

in 2002 so let's give a green star here - for being a very experienced

fund

which has seen all markets ups and downs

fund

is categorized in mid-cap category there is no fixed definition of mid cap but mostly they are considered as companies between market cap of rupees 5000 to 20,000 crores now moving to next this

fund

has a large effect on management of 5 3 8 9 Crows and ranks as the fourth biggest actively
managed mid-cap

fund

among a population of more than 30 based on value research categorization so this high asset under management speaks volume about

fund

s consistent performance and investors trust in

fund

management hence deserves a green star now let us talk about the moolah that is the returns we will first talk about the trailing returns from 21st April date and then talk about the calendar returns in trailing returns we can see the

fund

has consistently beaten its benchmark index that is
NSC 500 as well as mid-cap category average across one three five and ten years trailing return performance clearly shows exceptional

fund

performance and especially five year trailing return is outstanding and is among top five performers in the category now looking at calendar ice returns of last ten years from 2007 to 2016 which means returns from first chan to traverse December of a calendar year we see that there have been two instances when

fund

was beaten by both benchmark and category
mutual fund review franklin india prima fund franklin mutual fund top mid cap equity funds
average that is in 2007 and 2008 and both were very bad years for the

fund

then there was some great performances like in 2009 12 2013 14 and 2016 where they have written both benchmark and category average returns by good margin in beer markets of 2008 and 2011 point has given below average and average performance respectively now looking at this hole all

fund

s calendar year performance is pretty good as they have beaten both benchmark and category average six times out of ten and most of them
are recent years so they clearly have very good trailing return performance some recent exceptional calendario performances but it is not able to manage beer market Falls too well which makes us give them one green and one yellow star for the performance next important parameter is

fund

manager the

fund

is led by a popular small mid-cap

fund

manager our John Key salmon since February 2008 he is MBA from I am Bangalore and is also a CFA John is the old-timer in

franklin

's DT and has been with
them for close to a decade nam he also leads

Franklin

's popular small cap

fund

Franklin

India

smaller companies

fund

since February 2008 this one also has close to 5,000 crore as at under management he is also managing their flagship

equity

fund

Franklin

primer +

fund

which is a multi cap

fund

since February 2011 along with their

equity

CIO on an Radha Krishna it has more than ten thousand crores at under management he is also part of one management team of

Franklin

flexi cap

fund

which is a
multi cap

fund

with close to 3000 crore AUM since March 2014 and taxi'll phone since May 2016 which is a ELSS

fund

all these

fund

s which he manages have performed very well and are among category toppers in long term performances that is 5 and 10 years tracing returns John is supported by another

fund

manager Harish am sundar who is - IIM Bangalore MBA grad and CFA and join

Franklin

in 2007 as a research analyst he joined this

fund

management team last year only in May 2016 with seasoned
manager like John Kellerman leading the fold and pretty good performance since he is joining we will give this parameter a green stop next parameter is top stock holdings from the

fund

and understanding the

fund

s diversification as on 21st April one has 63 stocks in the portfolio with top 5 contributing close to only 16% current cash allocation is less than 8% and rest all is in

equity

fund

has very good diversification in portfolio and wait age of top five companies is very close to our red cap
mutual fund review franklin india prima fund franklin mutual fund top mid cap equity funds
benchmark of 15% and hence we give this parameter a green star next parameter is sector diversification top 3 sector contributes close to 42% with the maximum weight is of 24% to financial sector due to this well diversified sector contribution we give this parameter to a green stuff next our expenses expense ratio of the

fund

is 2.3 6% which is close to average expense ratio of this category that is 2.4 7% exit load of the

fund

is 1% if investment is redeemed reenforced 365 days of in which is
what most mid-caps to looking at similar size

fund

s they surely have some room to reduce expense ratio and hence we give this parameter a yellow star now those who like numbers let us discuss about few important ratios to standard deviation a measure of volatility and risk is lower than the category but higher than the benchmark which means it takes lower risk than the peers beta-2 is a measure of risk and is also lower than the category alpha which measures the risk adjusted returns so 16.1
alpha means it can perform 16.1% better than the benchmark so even by taking lower risk it has better alpha that is return potential than the category so this means this

fund

is moderately low risk and high return profile

fund

Nash's P ratio of the portfolio which is 23.5 and is lower than the benchmarks p/e of 27.1 so the

fund

is clearly moderately low risk and high return category

fund

ed good P and therefore deserves the green stuff few other important info to note about the

fund

is that
it is a mid-calf focused

fund

and hence has close to 70% investments in mid caps only and rest majorly in large caps and this table shows how this 10,000 si P would have performed in various time frames and to outstanding performance and what amazing returns this

fund

has given continuously so if we calculate we got total eight green stars and two yellow stars with not so great performance during beer markets being the major concern to summarize

franklin

india

primer

fund

is a veteran an oldest
bit cap category

fund

with more than 23 years history it is a focused mid-cap

fund

with almost none allocation to small caps and only 30 percent in large caps one has been a consistent performer in last six seven years beating both benchmark and category comfortably the heater rough starts between 2006 to 2008 but made a good comeback

fund

s performance in market dips is not great and performance in 2008 was forgetful point is being managed by our junky ramen a well-known name in small and
mid-cap static the mid-cap segments means the unpredictability and then there are other factors such as constraint liquidity limited coverage and poor information disclosures which make small and mid-cap investing a challenge hence the need for a skilled manager and a very good wetting process need to be installed which this

fund

has done exemplary with Janki nominate him strong history good performance a seasoned manager and a very process-oriented front house makes this

fund

a must in your
mid-cap

fund

shortlist that is all we have on this topic if you have any questions please do write in the comment section below and don't forget to subscribe to our Channel have a great day ahead