Change in mandate has impacted this MF's returns

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.HOW THE FUND HAS PERFORMED 81721937WHERE THE FUND INVESTS 81721942BASIC FACTSDate of launch: 2 MAR 2005Category: EquityType: Large & MidcapAUM (As on 28 FEB 2021): Rs 2,528 crBenchmark: Nifty Large Midcap 250 Total Return IndexWHAT IT COSTSNAV(As on 23 MAR 2021)Growth option: Rs 99.583Dividend: Rs 17.4572Minimum Investment: Rs 5,000Minimum SIP Amount: Rs 500Expense ratio(As on 28 FEB 2021) (%): 2.10Exit load: 1% for redemption within 365 daysFUND MANAGERSR.Janakiraman and Lakshmikanth ReddyTenure: 7 years /4 years, 9 monthsTop 5 sectors in portfolio (%) 81721972Top 5 stocks in portfolio (%) 81721978Recent portfolio changesNew Entrants: Container Corpn. Of India, Tube Investments of India (Jan) Hindustan Unilever (Feb)Complete Exits: Century Textiles & Inds., CESC, Cyient Limited, National Thermal Power Corp, NRB Bearings (Jan)Additions: Voltas, Indian Hotels Co., United Breweries, City Union Bank (Jan).How risky is it? 81721985Should you buy?Earlier known as Franklin India Flexi Cap, this fund adopted the large & mid cap mandate in 2018. Run with a distinct large-cap bias then, it has since had to undergo a substantial transition to comply with the revised mandate. While it retains its large-cap tilt, the sizeable addition of mid-caps has changed its risk profile. The portfolio is well-diversified yet retains large positions in its top bets. The fund enjoyed a stellar run of consistent outperformance for several years until 2015. It has since seen a sharp dip in return profile, particularly in the last two calendar years. While it has exhibited a turnaround in the past year, the fund has to prove execution under revised mandate over a longer period of time.Source: Value Research

from Economic Times https://ift.tt/31JxpWd