Franklin Build India Fund - Direct Plan

Kiran Dhawale / 26 Apr 2018/ Categories: DSIJ_Magazine_Web, MF - DSIJ Recommendation

Franklin Build India Fund - Direct Plan

This is an open-ended equity scheme which invests majorly in equity of companies engaged in infrastructure activities. The infrastructure activities here include activities like development, operations, management and maintenance of various infrastructures such as transportation, energy, resources & other infrastructure.

Reason for recommendation 

This is an open-ended equity scheme which invests majorly in equity of companies engaged in infrastructure activities. The infrastructure activities here include activities like development, operations, management and maintenance of various infrastructures such as transportation, energy, resources & other infrastructure. The fund has a good mix of the stocks from large cap, mid cap and small cap sectors.

 The scheme has invested ~62% of the corpus in blue-chip stocks, which provides for safety of the investment. Moreover, the fund is well-exposed to sectors like finance, construction and energy which are expected to outperform the market, going ahead. The major holdings of the fund are in SBI, Axis Bank and HDFC Bank. Post Q3FY18, SBI has already started unlocking its value in its subsidiaries and taking steps in the same direction. In addition, the private banking leader Axis Bank forms major part of the corpus of the scheme which is expected to do well with the improving asset quality and earnings. Moreover, the fund's investment in the energy sector which forms ~18% of the corpus bodes well for the longer run. So, we see this fund as a potential buy to generate better returns compared to other funds in the longer run. The fund is suitable for high risk investors.