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Franklin India Taxshield Fund

3 Value Research
Change from previous, NAV as on Feb 16, 2018
Category: Equity: Tax Saving
Assets: R 3,543 crore (As on Jan 31, 2018)
Expense: 2.41% (As on Jan 31, 2018)
Investment Objective

The scheme seeks medium to long term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.

Fund Managers
+ Lakshmikanth Reddy since May 2016
  • Education: Mr. Reddy is a B.Tech in Mechanical Engineering from Jawaharlal Nehru Technical University, Hyderabad and also holds a PGDM from IIM-A.
  • Experience: Prior to joining Franklin Templeton Mutual Fund he was associated with ICICI Pru Life Insurance Company Ltd. as Head-Equity (Jun 2004-Feb 2016), HSBC Capital Markets as Equity analyst (Apr 2003-May 2004), ABN Amro Asia Equities as Equity Analyst (Feb 2000-Mar 2003), UTI as Buy Side Analyst (Jun 1997-Feb 2000) and Crompton Greaves as Design Executive (Aug 1993-Jun 1995).
  • Funds Managed:
  • Franklin India Balanced Fund - since May 2016
  • Franklin India Flexi Cap Fund - since May 2016
  • Franklin India Monthly Income Plan - since May 2016
  • Franklin India Pension Fund - since May 2016
  • Franklin India Taxshield Fund - since May 2016
+ R Janakiraman since May 2016
As on Dec 29, 2017

An established fund in the ELSS category, it has steadfastly maintained a large-cap bias amid different market phases. Consistency of returns and an ability to contain downside have helped it hover in the four to five star ratings for most of the last eight years.

Returns of the fund has been low compared to its category and benchmark for the past one year. The fund's year-to-year returns didn't always beat its more aggressive peers, but its consistent performance adds up to some very handsome returns over the long term.

A fund which initially allocated a minimum of 60 per cent exposure to large-caps, has yanked this up to 80 per cent last year. Mid and small caps now make up for less than 20 per cent of the portfolio thereby, shielding the fund from any meltdown in this market segment.

The fund also avoids momentum stocks and sticks to bottom-up fundamentals based investing. Though this fund is from a growth style fund house, it tends to be quite valuation-conscious. It doesn't take cash calls and remains fully invested through cycles.

The fund's three and five-year returns are 2 to 4 percentage points ahead of the benchmark but neck-and-neck with the peers. By outpacing benchmark in 12 of the last 15 years, this fund has proved more adept at containing losses in bear markets than riding bull phases to the hilt. Go for it if you like a less bumpy ride in choppy markets.

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