FCP Franklin India Smaller Companies review: Sharp decline in performance
HOW HAS THE FUND RETURNED
WHERE THE FUND INVESTS
BASIC FACTS
WHAT IT COST
NAV(As of February 15, 2022)
- Growth Option: Rs 88.32
- IDCW: Rs 35.45
- Minimum investment: Rs 5,000
- Minimum SIP amount: Rs 500
- Expense ratio (as of December 31, 2021) (%): 1.85
- Exit fee: 1% for redemption within 365 days
THE HEAD OF FUNDING
R. Janakiraman
Term: 13 years, 11 months
Top 5 sectors in portfolio (%)
Top 5 stocks in portfolio (%)
Recent Portfolio Changes
- New entrants: Affle (India), Anand Rathi Wealth, Data Models, Exide Inds, Sapphire Foods, Gateway Rail Freight
- Full outings: Gateway Distriparks, HT Media, Navneet Education
- Increasing allowance: Anand Rathi Wealth, Chemplast Sanmar, Exide Inds, Heidelberg Cement, Hitachi Energy, Ion Exchange, Metropolis Healthcare, Sapphire Foods, Westlife Development.
How risky is it?
Source: Value Research
Should I buy?
This small-cap fund takes significant exposure to mid-caps like many peers in the segment. The fund manages a highly diversified portfolio with a modest position in its best bets. The fund manager is comfortable with large deviations in sector positioning from the index. The fund has had an excellent track record of outperformance through 2016, consistently ranking in the first quartile among its peers. However, his performance has deteriorated sharply since then. Worryingly, the fund lags far behind the index and its peers, even in years when small caps have performed well. Its downside performance has also deteriorated in recent years, which does not bode well in the long term.