I have two questions. First, I have SIPs running in Franklin India Smaller Companies Fund. In view of the closure of its six debt schemes, is it safe to continue with my investments or should I withdraw from this fund? Secondly, I want to start new SIPs with a long-term perspective. Can you suggest a few funds for that?
Answering your first question, many investors have been worried about their equity investments at Franklin. But Franklin India Smaller Companies Fund is a completely different kind of fund that invests in small-cap stocks. The problem at Franklin is limited only to those six managed credit debt funds and it has nothing to do with equity funds or related operations. Many investors will be worried about this simply because of what has come in the news. Having said that, Franklin India Smaller Companies Fund remains a very attractive fund. For your second question, I would say a multi-cap fund, which has the flexibility to invest across the available market universe, can be your choice. Further, I feel whenever there will be a market turnaround, it will be led by large-cap funds. So, from that standpoint also, a multi-cap fund may be a good bet.