Franklin India Bluechip
Manager Biography & Fund Strategy
A
He frequently invests in beaten-down
stocks or out-of-favour companies,
especially due to external factors rather
than deteriorating fundamentals. This
strategy has served the fund well.
Radhakrishnan prefers private
sector entities over their public sector
counterparts, in line with his belief that
the former offer more robust business
models and superior operational
efficiencies. Hence, the portfolio’s core
exposure continues to be in the private
banks and consumption-oriented
stocks. In the recent times, the manager
has shifted his focus on stocks which
stand to benefit from the pick-up in
urban consumption than rural.
Given his valuation-conscious
strategy, clearly, he is unlikely to be at
his best in sharply rising or momentum-
driven markets. The fund is an excellent
proposition for investors looking for
large cap exposure over the long term.
nand Radhakrishnan has over
20 years of experience in equity
research and fund management. He
has been with Franklin Templeton
since 2004 and managing this fund
since 2007.
This is a true blue large-cap fund.
Radhakrishnan’s portfolio displays
strong convictions and deviates
significantly from the benchmark index
and category peers both in terms of
stock picks and sector weights.
The investment approach is team-
driven, where the focus is on identifying
businesses with clean balancesheets,
strong business models, sustainable
competitive strengths and high
corporate governance standards.
Though Radhakrishnan looks for
companies with sustainable growth
prospects, he is fairly valuation-
conscious and is willing to stay away
from issues which are overvalued.
Calendar Year Returns
Calculation Benchmark: S&P BSE 100 India TR INR
45.0
37.5
33.3
26.3
30.0
22.5
15
7.5
00.0
-7.5
6.4
-2.6 -1.3
YTD
2017
5.0
2016
Franklin India Bluechip Gr
37.2 34.2
4.1
2.0
-2.0
2015
2014
S&P BSE 100 India TR INR
7.6
2013
Trailing Returns
Equity
Sectors
Portfolio
Date:
28/2/2018
Basic Materials
6.3
Consumer Cyclical
12.5
Financial Services
30.1
Real Estate
0.0
Consumer Defensive
7.3
Healthcare 8.6
Utilities
5.1
Communication Services
6.8
Energy 5.3
Industrials
7.0
Technology
10.9
Total
100.0
Top Holdings
HDFC Bank Ltd
Infosys Ltd
Larsen & Toubro Ltd
Bharti Airtel Ltd
ICICI Bank Ltd
Yes Bank Ltd
Mahindra & Mahindra Ltd
Kotak Mahindra Bank Ltd
Axis Bank Ltd
State Bank of India
Portfolio
Weighting
(%)
9.55
5.80
4.89
4.45
4.18
3.98
3.69
3.37
3.27
2.58
Fund Snapshot
Data Point: Return Calculation Benchmark: S&P BSE Midcap INR
YTD 1 Year 3 Years 5 Years 10 Years
Franklin India Bluechip Gr -2.57 12.94 8.00 14.53 10.69
S&P BSE 100 India TR INR -1.31 19.83 8.00 15.33 8.65
Average -2.10 18.21 7.93 15.82 8.83
Morningstar Category India Fund Large-Cap
Fund Size (`)
81 billion
Inception Date
1/12/1993
Annual Report Net Expense Ratio
2.22
Morningstar Rating Overall
****
Manager Name
MUTIPLE
Minimum Investment (`)
5,000
Morningstar Analyst Rating
GOLD
Data Source: Morningstar India
www.outlookmoney.com April 2018 Outlook Money
69