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Is Bluechip in Trouble?

You have downgraded Franklin India Bluechip Fund from four stars to three stars. I want to know whether the fund is not investment worthy now.
-Venkat

You have downgraded Franklin India Bluechip Fund from four stars to three stars. I want to know whether the fund is not investment worthy now.
-Venkat

The ratings of a fund are governed by its relative performance in its category over a period of three to five years. The rating of Franklin India Bluechip Fund has declined from four to three-star because of its recent under-performance. The fund may not look very attractive to invest at the moment but there is no need to press the panic button and exit either.

The fund has been a long-term winner and importantly, the same fund management team is still at the helm which has played a vital role in Franklin India Bluechip Fund's exceptional performance record. Therefore, while there is no denying the fact that its under-performance has become a cause for concern, but it is definitely not all over for the fund yet. In fact, the fund has shown some signs of revival in the past three to four months.

However, watch it closely and if the fund continues with its under-performance and loses another star to be downgraded to two-star, it will be time to exit and look for better options.

Read More About the Fund Here

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