Franklin India Taxshield
Manager Biography and Fund Strategy
L
akshmikant Reddy has been
managing the fund since 2016. He
has 20 years of research experience
and over 11 years of portfolio
management experience in the
insurance industry. This is his first stint
at managing a mutual fund.
The fund is run with a fluid
investment strategy with no
restriction in terms of market cap or
investment style. The idea behind
having a fluid investment strategy is
to benefit from changing investment
scenarios and capture wider range
of investment opportunities, which
makes this fund a differentiated
offering from the fund house.
Being a flexicap fund, the portfolio
is likely to increase exposure to
midcaps in early part of the recovery
cycle. When the economy is in a
mature phase of recovery or when
the valuations of mid cap stocks
are stretched, the mid cap exposure
would be reduced to take some risk
out of the portfolio.
The investment process is growth-
oriented with a focus on companies
with low leverage, healthy ROEs,
consistent growth rates and free
cash flows. The aim is to get good
understanding on the quality, growth
and sustainability of the company
before investing.
Lakshmikanth uses the bottom-
up investment approach to select
stocks. Further, like other managers
from the fund house, he will also not
shy away from taking contrarian bets
with a long-term horizon if the stock
has been affected negatively due to
external factors. Also, he is conscious
of rich valuations and will exit stocks/
reduce allocation to stocks which he
believes are fully valued. Taking cash
calls is not part of the investment
strategy and the managers prefers
being fully invested.
Calendar Year Returns
Calculation Benchmark: None
100
80
60
40
20
00
-20
56.9
29.1
-0.1 0.0
YTD
37.4
35.0
4.7 5.4
2017
2016
Franklin India Taxshield Gr
6.1 6.1
4.0 -0.2
2015
2014
2013
S&P BSE 200 India TR INR
Equity
Sectors
Portfolio Date:
31/5/2018
%
11
17.5
34.1
0.0
7.8
3.0
7.3
2.3
7.5
3.5
5.9
100.0
Basic Materials
Consumer Cyclical
Financial Services
Real Estate
Consumer Defensive
Healthcare
Utilities
Communication Services
Energy
Industrials
Technology
Total
Top Holdings
Kotak Mahindra Bank Ltd
HDFC Bank Ltd
Axis Bank Ltd
Mahindra & Mahindra Ltd
Hindalco Industries Ltd
Grasim Industries Ltd
Power Grid Corp Of India Ltd
Yes Bank Ltd
Indian Oil Corp Ltd
Infosys Ltd
Portfolio
Weighting
(%)
8.77
8.36
5.67
5.43
3.65
3.59
3.22
3.14
2.88
2.87
Fund Snapshot
Morningstar Category
Trailing Returns
Data Point: Return Calculation Benchmark: S&P BSE 500 India TR INR
YTD 1 Year 3 Years 5 Years 10 Years
Franklin India Taxshield Gr -0.13 11.15 9.72 18.97 13.89
S&P BSE 200 India TR INR 0.00 13.28 11.16 15.67 10.15
Average -1.02 10.24 9.40 15.12 9.92
India Fund
Elss(Tax Savings)
Fund Size (`)
37 billion
Inception Date
10/4/1999
Annual Report Net Expense Ratio
2.45
Morningstar Rating Overall
****
Manager Name
Multiple
Minimum Investment (`)
5,00
Morningstar Analyst Rating
Bronze
Data Source: Morningstar India
www.outlookmoney.com July 2018 Outlook Money
C