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Don't Invest in Funds with Constrained Mandates

Franklin India Bluechip is a good large-cap fund, but investing in multi cap funds would be more beneficial right now

I have been investing in Franklin India Bluechip via the SIP route. The fund has slipped in ranking. Should I exit it? If yes, where should I invest the redeemed amount?
- Pankaj Gupta

Franklin India Bluechip is a good large-cap with a strong and credible 20-25 year history. Even though it has slipped recently and there are visibly better options available in its category, we don't think there is anything disappointing about the fund. However, a long-term investor shouldn't be holding it for an entirely different reason - not because it hasn't done well recently, but because it has a constrained investment mandate. Given the kind of market we're getting into, you would be best placed by putting your money in funds that can invest across market caps. Franklin India Bluechip will invest only in large-cap stocks, but the current market situation will benefit mostly mid- and small-cap stocks. Hence, a better option would be to move your money to Franklin India Prima Plus or ICICI Prudential Dynamic or Quantum Long Term Equity. These funds have a credible history and a flexible mandate.



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