How Investing in Franklin India Smaller Companies Fund can Make You Rich?

Mutual fund investments come in various styles. There are equity funds, debt funds, and hybrid options that suffice the needs of their seekers. However, there are internal choices available in these options that makes the variety denser, and hence, ensures that everybody gets a chance to maximise their wealth.

Talking about variety in the equity segment, there are several high-performing options one of which is small cap funds. These funds are young, energetic and have a long way to go till they mature and flourish. Franklin India Smaller Companies Fund is one of the best small cap fund available to invest in India. It invests in fresh companies, where there are unlimited opportunities for further growth and expansion. This article contains some solid information about Franklin India Smaller Companies Fund (G), a quick reading of which will give you plenty of ideas on how to make a strong portfolio. So, stay tuned for a while and gulp down this knowledge buffet!

Discussing the Basic Facts

Franklin India Smaller Companies Fund – Regular Plan (G) is a growth-oriented, equity small cap fund. The fund was launched in the beginning of the year 2006, with a mission to provide a platform to high risk takers for making good wealth in the long run. The fund mainly pins its wealth on newly established companies that have just crossed their preliminary stage of incorporation, and are now headed towards expansion in the future.

Being in the market for nearly 15 years, Franklin India Smaller Companies Fund (Growth) has established itself as one of the top small cap funds in India. It boasts a huge corpus that stands at a worth of ₹7,577 crore (as on 31st May 2019), and an enormous clientele of more than 5 million active portfolio with the number growing rapidly each year.

The Fund Data

The NAV
The NAV is basically the amount that you pay for acquiring one unit in a mutual fund. It heavily impacts the budget, as the higher the NAV the more you’d have to stretch your budget to acquire a given number of units. The latest NAV of Franklin India Smaller Companies Fund (G) as of 11th June 2019 was recorded at ₹54.4227. This value arrived after an escalation of 0.24%, which is a decent hike for a fund this size.

The Fund Management

Managing the fund efficiently is a difficult responsibility on the part of the fund managers. Constantly monitoring the fund and adjusting its portfolio according to the market movements asks for the minds of geniuses. Thankfully, the resources at Franklin India Smaller Companies Fund (G) are managed by top brains in fund management, as evident from the following two ratios: -

1. Expense Ratio – This ratio determines the level of expenditure incurred for keeping the fund functional, besides measuring some incidental expenses. Normally, this ratio ranges between 1.90-2.50%, and in very rare cases does it reach the mark of 3.00%. In case of Franklin India Smaller Companies Fund, the ratio is 1.87% which spells that the resources are managed efficiently and optimally.
2. Turnover Ratio – This ratio measures the frequency with which the portfolio of the fund is revised. The higher the ratio, the more the adjustments and hence, the lower the portfolio management. At Franklin India Smaller Companies Fund (G), the ratio sits at a very low value of 10%. This again shows that the fund managers are doing a fine job managing the fund efficiently.

The Portfolio

Being a small cap fund, Franklin India Smaller Companies Fund – Regular Plan (G) keeps majority of its assets in small cap stocks. However, for the sake of diversification there are other stocks too in the portfolio that doesn’t let the portfolio fail due to high risks. The table below determines the asset distribution made in the fund: -

So, if you desire a high growth portfolio and can bear some risks for achieving good wealth, then you must place your money in Franklin India Smaller Companies Fund (Growth). Call your financial advisor today, and draw a plan that can help you achieve your objectives.

This article discusses some important facts and figures about one of the best small cap funds to invest in India, Franklin India Smaller Companies Fund.