Why Invest in Franklin India High Growth Companies Fund?
The high growth companies are such entities which have grown up and raised their sales and revenues at a much higher rate than the normal economy growth rate. And, as these companies tend to increase their earnings, their Price to Earning Ratio(P/E Ratio) is comparatively higher. If you are looking for exposure to these high-growth corporates, then Franklin India High Growth Companies Fund is one of the apt choices for you. It focuses on companies which offer the best trade-offs between growth, risk, and valuation. It follows an active investment strategy and aims to empower the portfolio with diversified investment avenues.
Reasons for Investing in Franklin India High Growth Fund
Selecting a fund for investing for a long-term investment horizon is a challenging task as we make such investment to achieve a specific goal. And if it does not result in good yields as per the expectation, the efforts made for such long period go in vain. Thus, it is essential to analyse the scheme prior to parking the hard-earned money for the future financial growth.
The Franklin High Growth Fund is one of the best schemes for consideration to make a long-term investment. A brief analysis of this plan has been provided here which will be helpful for you to select the same for your portfolio.
1. The scheme is ranked either 2nd or 3rd as per CRISIL rating since a long time and is offering greater absolute returns to the investors.
2. With the objective of achieving capital appreciation, it has invested the capital in the companies which tend to grow at a fast pace. It follows a blend of top-down and bottom-up approaches to accomplish the investing goals.
3. The fund is outperforming its benchmark and category since inception and yielding annualised return of 25.8 and 23.2 percent for three and five-year investment horizon.
4. The risk-adjusted returns, i.e., Sharpe Ratio of the scheme is also higher when compared with its peers, and in addition to this, it scores better than many large-cap funds.
5. The fund managers of this plan have a focused approach and aim to deliver the best returns to the investors.
6. They have built a highly diversified portfolio with the fund allocation in the Banking, Automotive, Telecom, Oil & Gases, and Technology sectors.
7. The scheme holds major investments in SBI, ICICI Bank, HDFC Bank, Yes Bank, and Bharti Airtel.
This brief synopsis of Franklin India High Growth Companies Fund is considerable for the investors who want to know about the same making investments.
Suitability of Franklin India High Growth Companies Fund
As per the nature of investing in this scheme, it is focussed on enhancing the capital worth of the investors and provide them high growth in the future. The investments are made in the small- and mid-cap companies, and thus it involves greater risk. Accordingly, it is best suited to those investors who are willing to invest for a longer span of time and can bear a considerably higher level of risk.
For making a worthwhile investment in the mutual fund, one needs to gain in-depth knowledge of the schemes, do proper research and analysis and then make the final selection. This programme has all the major traits which are required for making productive investments and thus, it can be considered for your portfolio, if you want to invest for a longer duration and have a high risk-bearing capacity.
By reading this article, you will conclude that for making an investment in order to gain high growth of capital on the long-term horizon, Franklin India High Growth Companies Fund can be considered by the investors.