Franklin India Bluechip Fund Direct Growth

An investor can choose a large cap mutual fund such as Franklin India Bluechip Fund Direct Growth, which was established by Franklin Templeton Mutual Funds in January 2013.

This fund is compared with the benchmark Nifty 100 Index TRI and Nifty 50 Index TRI and holds an AUM of Rs. 7465.07 crores.

If you had invested one lakh in 2013, your fund would have raised to 3.92 lakhs in 2024.

Investing in this fund requires a minimum lump sum of Rs. 5,000 and a minimum monthly SIP of Rs. 500.

ICICI prudential bluechip fund comprises 4 plans,

  • Direct Growth Plan (We speak about this plan in this article)
  • Regular Growth
  • Direct – IDCW (Dividend Plan)
  • Regular – IDCW (Dividend Plan)

As a reader, you will find all the details about this fund that you need to know before investing.

Franklin India Bluechip Fund Direct Growth NAV:

The current NAV of Franklin India Bluechip Fund Direct Growth is 936.48 (as of February 13, 2024).

The NAV of other plans of the same fund are,

  • Regular Growth – 855.27
  • IDCW – Regular Plan – 43.36
  • IDCW – Direct Plan – 49.85

During the NFO period, all plans under the Franklin India Bluechip Fund had an NAV of Rs. 10.

The Direct Growth Plan has provided better returns and performance than the fund’s other plans.

Choosing a Direct Fund is one of the best options if you can manage the risk appetite of the fund.

Regular plans are best if you need a professional to manage your fund.

Franklin India Bluechip Fund Direct Growth Performance:

Franklin India Bluechip Fund is an open-ended scheme that invests in large-cap companies (Top 100 companies in the Indian share market per share of market capital).

This fund’s objective was to outperform the benchmark (Nifty 100 TRI) with comparatively low risk.

The fund has performed at a CAGR of 13.09% per annum since inception vs 19.26% to Nifty 100 TRI (benchmark). The category average has performed at a CAGR of 15.61%.

Franklin India Bluechip Fund Performance
Image from Moneycontrol.com

Franklin India Bluechip Fund has underperformed its category average in 2 and 5 years of performance in all the available plan structures.

Here is a quick snapshot of the fund’s performance compared with the benchmark and category average.

Franklin India Bluechip Fund year wise Performance

This fund is a good choice for long-term outperformance if you want to outperform the category average or benchmark over the medium or long term.

The 2 years performance of the fund is 0.93% lower than the benchmark and 3.65% lower than the category average.

In 5 years of performance, the Franklin India Bluechip Fund direct growth plan has performed 0.01% higher than the benchmark and 1.8% lower than the category average.

The same fund has underperformed the benchmark and category for the last 1 year.

Fundamental Analysis Ratios:

  • P/B – 3.53
  • P/E – 23.58

Franklin India Bluechip Fund Portfolio:

The portfolio of this scheme includes equity (99.14%), and cash (0.86%).

Equity Holdings (99.14% of the total portfolio):

This fund holds 39 stocks, which are divided as follows

  • Large Cap Investments – 71.51%
  • Mid Cap Investments – 8.34%
  • Small Cap Investments – 0%
  • Others – 19.24%

Cash (0.86% of the total portfolio)

  • Net Receivables – 0.86%

Fund Portfolio across Industries:

  • Financial – 33.3%
  • Technology – 13.6%
  • Energy – 8.0%
  • Automobile – 13.3%
  • Healthcare – 7.1%
  • Consumer Staples – 7.2%
  • Others – 11.3%

Top 20 Holdings:

  • ICICI Bank Ltd – 9.20%
  • Reliance Industries Ltd – 7.95%
  • HDFC Bank Ltd – 7.03%
  • Infosys Ltd – 5.37%
  • HCL Technologies Ltd – 4.64%
  • Axis Bank Ltd – 3.84%
  • Larsen & Toubro Ltd – 3.73%
  • Tata Motors Ltd – 3.49%
  • Kotak Mahindra Bank Ltd – 3.48%
  • Mahindra & Mahindra Ltd – 3.27%
  • Godrej Consumer Products Ltd – 3.12%
  • State Bank of India – 2.65%
  • Cognizant Technology Solutions Corp Class A – 2.57%
  • IndusInd Bank Ltd – 2.47%
  • Bajaj Finance Ltd – 2.30%
  • Sun Pharmaceuticals Industries Ltd – 2.28%
  • Zomato Ltd – 2.02%
  • SBI Life Insurance Company Limited – 2.01%
  • Hindalco Industries Ltd – 1.98%
  • InterGlobe Aviation Ltd – 1.96%

34.19% of this scheme’s portfolio is made up of its Top 5 securities, and 82.91% is made up of its Top 20 sec

Risk Ratios of the Franklin India Bluechip Fund:

A mutual fund’s risk ratio should be analyzed before investing in it.

For predicting the volatility and risk of returns, we calculate a standard deviation, an alpha, a beta, and a Sharpe ratio.

Below are the details of the fund’s three-year risk factors compared to the category average over this period.

  • Standard Deviation – 14.17 vs. 13.92
  • Alpha – (-)0.17 vs (-) 0.26
  • Beta – 0.94 vs 0.94
  • Sharpe Ratio – 0.65 vs 0.75

The fund has moderately low risk compared to the category average.

Compared to the category average, it also provides a better risk-adjusted return.

Franklin India Bluechip Fund Direct Growth Expense Ratio:

Any mutual fund scheme’s expense ratio plays a crucial role and impacts its performance.

The expense ratio or TER of Franklin India Bluechip fund direct growth is 0.99%. The TER of the category average is 1.00%.

These are the expense ratio details for the same fund with different plans.

  • Regular – Growth – 1.83%
  • Regular – IDCW – 1.83%
  • Direct – IDCW – 0.99%

This scheme’s direct growth plan is the best choice.

Franklin India Bluechip Fund Managers:

The fund manager’s history is essential information for every mutual fund investor.

Three managers manage this fund. Venkatesh Sanjeevi,  Sandeep Manam, and Ajay Argal.

Venkatesh Sanjeevi has been managing the fund since October 2021. Before joining Franklin Templeton AMC he worked with Pictet Asset Management, London, ICICI Prudential AMC, Edelweiss Asset Mgmt. Ltd., Edelweiss Securities Ltd., and Hindustan Unilever Ltd. 

Apart from this fund, he manages one more scheme at Franklin Templeton AMC.

Sandeep Manam has been managing the fund since October 2021. Before joining  Franklin Templeton AMC he worked with Cognizant Technology Solutions, Shapoorji Pallonji & Company Private Limited. 

Apart from this fund, he manages twenty more schemes at Franklin Templeton AMC. 

Ajay Argal has been managing the fund since December 2023. Before joining Franklin Templeton AMC he worked with Baring Asset Management (Asia) Ltd., Aditya Birla Sunlife Mutual Fund, and UTI AMC, equity funds, balanced funds, equity research & equity dealing.

Apart from this fund, he manages four more schemes at Franklin Templeton AMC.

Conclusion:

  • Franklin India Bluechip Fund is designed for investors with long-term goals.
  • This fund is one of India’s top picks in large-cap mutual funds.
  • Three years, five years, and performance since inception is low compared to benchmark and category averages.
  • The expense ratio of this fund is lower than the category average.
  • Portfolios are well diversified within 39 equity securities and a few cash components.
  • Hold moderately low risk compared to the category average.
  • The fund manager’s track record is awesome.