Franklin India High Growth seeks to invest in companies that tend to grow earnings at a fast pace and offer the best trade off between growth, risk and valuation and is suitable for investors who would like to take advantage of India’s longer-term growth potential. The approach is visible the way the fund has fared over the past five years, where it has consistently outdone its benchmark by a significant margin across different time frames. Where the fund scores most is with its consistent performance during both bull and bear phases of the market.
The strategy adopted by this fund is to invest across market capitalisation; however, it tends to up its exposure to mid-cap and small-cap stocks when it senses the opportunity. The exposure to mid and smallcaps has gone up to nearly 25 per cent now. The stability is achieved by maintaining a nearly 80 per cent allocation to large-caps, which ensure the fund manages the downside during market falls.
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