Franklin India Prima Fund – Multiplied wealth 32 times in last 15 years
In part 2 of our Wealth Creator Mutual Funds series, we bring to you one of the longest running mutual funds – Franklin India Prima Fund which was launched on Dec 1,1993. The fund has multiplied the wealth of its investors by 32 times in last 15 years, which means an investment of Rs. 10,000 on 6th June 2002 in this fund is worth Rs. 3,26,807 as on 5th June 2017.
The fund sticks to its name and invests around 65-70% of its portfolio in Mid-Cap stocks which is higher than that of the category’s average allocation. This approach coupled with good stock selection has resulted in superior returns.
The fund remains invested in its top two picks – Yes Bank & Finolex cables since 2008 and 2009 respectively. These two stocks have returned 788.6% & 2024.4% respectively in absolute terms and 69.4% & 163% CAGR respectively since the first investment of the fund in them. This shows the stock picking capability & conviction of the fund manager.
Fund vs Benchmark
The benchmark returns are nowhere near the fund’s returns; the fund has beaten the benchmark 8 times in last ten years and that too with an average of 8%.
The annualized returns of the fund have also beaten the benchmark by a huge margin. The 3 yr & 5 Yr returns of the fund are ahead of the benchmark, NIFTY 500 by 12.4% & 12.1% respectively.
Remarkable SIP returns
A monthly SIP of only Rs 1,000 in the fund since its inception would have grown to Rs 75 lakhs by now (as on 5th June 2017). This means the return since inception on the SIP investment is a whopping 23%. Let us take a look on monthly SIP returns of Rs 1000 for different periods.
The fund has a higher standard deviation than its benchmark but lower than that of the category which means the fund is more volatile than the benchmark but less volatile than the category.
We recommend Franklin India Prima Fund to the investors who are looking to invest for long term and can absorb the volatility that comes with a mid-cap fund.
Note – Regular Growth Plan of the fund has been considered for calculations.
Invest in Franklin India Prima Fund on WealthTrust mutual fund app now.
Top Wealth Creators of all time – Part 1 – Birla Sun Life Frontline Equity Fund
Top Wealth Creators of all time – Part 3 – SBI Bluechip Fund