According to figures released today, Franklin Templeton's new Flexicap fund has collected over Rs 1,950 crore in its IPO, thus becoming India's largest open-ended equity fund from day one. It replaces Franklin's own Bluechip, which has Rs 1836 crore of assets currently, at the top. Bluechip is an 11-year-old fund.
Flexicap's astounding success underscores the mutual fund IPO boom that is going on. In the past 11 months, over 44 new funds have collected over Rs 6,500 crore. However, even in this mania, Franklin Flexicap's success has been exceptional. According to one large fund distributor that Value Research spoke to, "Flexicap didn't really have to be sold, it was just bought. People came and asked for the forms themselves and invested big amounts."
Clearly, it was the combination of Franklin's stellar track record (Bluechip has returned 27.73 per cent p.a. over 11 years) and the unprecedented bull-run on the markets that made investors open their wallets for Flexicap in such a big way.
Of course, collecting such a huge amount at the markets' all-time peak will probably be the toughest investment challenge that this AMC has faced till now. It will be interesting to watch how Franklin Templeton's famed fund management team performs with Flexicap in the months to come.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
