Before discussing franklin India smaller companies fund let us put a brief outlook about this fund house.
Franklin India is one of the best mutual fund houses in India with proven track records. Over the years I can see a strong return that this fund has generated for its investors.
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Franklin India smaller companies fund growth
Among the other funds franklin India smaller companies fund growth has been remarkable. Looking at the franklin India smaller companies fund growth; this fund has grown over 16% compounded annual growth rate (CAGR) since its inception in January 2006. For the last year, the franklin India smaller companies fund has grown over 56% which is one of the best returns. If you look for a medium-term perspective of franklin India smaller companies fund, it has given a return of around 25% CAGR.
Now my question is can we work on the companies that franklin India smaller companies fund has invested in to get a benefit out of as direct retail investors in the stock market? The answer may be yes, but we need to do our due diligence before investing in these companies. The most important part we need to consider here is that this is just a list of companies that one of the best mutual fund houses franklin India smaller companies fund has invested in.
Of course, this gives us confidence that these companies are good, but we need to understand the entry and exit points for these companies and also need to understand the fundamentals of these companies. I hope this makes sense to you. Let us find out the companies and the sectors along with their weightage in the fund. The data used here are taken directly from franklin India smaller companies fund site on 26th March 2024. The value may change after that.
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Franklin India smaller companies fund
| Sector Breakdown | Weightage (%) |
|---|---|
| Banks | 13.20 |
| Consumer Durables | 7.88 |
| Industrial Products | 7.38 |
| IT – SOFTWARE | 6.55 |
| REALTY | 6.37 |
| Construction | 6,24 |
| CHEMICALS & PETROCHEMICALS | 5.12 |
| AUTO COMPONENTS | 4.66 |
| PHARMACEUTICALS & BIOTECHNOLOGY | 4.39 |
| INDUSTRIAL MANUFACTURING | 4.18 |
| CAPITAL MARKETS | 3.80 |
| LEISURE SERVICES | 3.53 |
| HEALTHCARE SERVICES | 3.13 |
| Finance | 3.11 |
| COMMERCIAL SERVICES & SUPPLIES | 3.07 |
| IT – SERVICES | 1.99 |
| CEMENT & CEMENT PRODUCTS | 1.76 |
| Aerospace & Defence | 1.68 |
| Agricultural Food & Other Products | 1.64 |
| HOUSEHOLD PRODUCTS | 1.63 |
| TEXTILES & APPARELS | 1.63 |
| TRANSPORT SERVICES | 1.37 |
| Gas | 1.18 |
| FOOD PRODUCTS | 1.04 |
| Retailing | 0.81 |
| FINANCIAL TECHNOLOGY (FINTECH) | 0.75 |
| ENTERTAINMENT | 0.71 |
| Petroleum Products | 0.69 |
| ELECTRICAL EQUIPMENT | 0.50 |
The fund has shown faith on Banking sector. It is actually the sector of the future in India. This is evidence from the fund allocation of Franklin Templeton. It is important to note that the investors need to find the under valued stocks in the banking and finance sector. NBFC may be one of such sector to focus on. Find out the stocks in this sector and wait for the right opportunity to enter in to.
Below are the top 10 companies where Franklin India smaller companies fund is invested in. These are not recommendation, these stocks are directly taken from this fund portfolio. Do your own due diligence before investing in these companies.
Top 10 Franklin India smaller companies fund
| Top 10 holding in Franklin India smaller companies Fund | Weightage (%) |
|---|---|
| Equitas Small Finance Bank Ltd. | 4.05 |
| Brigade Enterprises Ltd. | 3.93 |
| Kalyan Jewellers India Ltd. | 2.94 |
| Multi Commodity Exchange of India Ltd. | 2.84 |
| Deepak Nitrite Ltd. | 2.60 |
| KPIT Technologies Ltd. | 2.49 |
| Karur Vysya Bank Ltd. | 2.39 |
| J.B. Chemicals and Pharmaceuticals Ltd. | 2.10 |
| ICICI Bank Ltd. | 2.01 |
| Ahluwalia Contracts India Ltd. | 1.97 |
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