Franklin India Bluechip

If you want to play it safe and get rewarded too, then you can hitch your wagon to this star.

In 2009, it was impressive with a return of 84 per cent (category average: 74%). This was because it took a chance with smaller companies. In fact, the mid cap allocation averaged at around 20 per cent all through the year. In March 2009, the large cap allocation dropped to 75 per cent, which was gradually increased to touch 83 per cent by December. Though pretty high in itself, it was lower than that of the category average.

Despite the large cap tilt, the fund manager has always played it safe. He maintains a pretty compact portfolio, though in 2009 the number of stocks began to rise to average at a fairly decent 40 (last 6 months of 2009). Over the past two years he has bet heavily on Financials, cornering 26 per cent of the portfolio at one time, though individual stock bets don't exceed 7 per cent.

Interestingly, the fund manager has the leeway to go right down to a 60 per cent equity allocation. But even during 2008, it never dropped below 91 per cent.

This fund has its occasional moments where the performance is fabulous, such as 179 per cent (1999) or 120 per cent (2003). But by and large, it does not astound but delivers superior returns to the category average. Its 5-year annualised return as on January 31, 2010 was 23 per cent. A very impressive number considering the large cap tilt.

This article was originally published on April 09, 2010.