Invest in Franklin India High Growth Companies Fund - Growth Plan for higher returns
Growth Funds focus on investing in wide ranging and diversified portfolios of equity and stocks with the primary goal of capital appreciation. The funds are locked in for a certain period of time and with no or very less payouts in between. The portfolio of High growth funds include companies who have a higher growth and reinvest these earnings into expansion, development and other aspects which aid further growth in the longer run. These funds carry work on the premise of high risk and high return, suited for investors who are in for the long haul, typically for around 5 years - 10 years time period. These growth funds form a major share of the total mutual funds. A well managed growth fund splits the investment between the small – cap, mid-cap and large cap group of companies thereby diversifying the portfolio. Franklin India High growth companies fund – growth plan is one such well managed growth fund which has been performing consistently well over a longer period of time.
Investing in Franklin India High Growth Companies Fund - Growth Plan
Franklin India High Growth companies Fund – Growth plan is a growth fund which aims at investing in high growth Indian companies as part of its portfolio. It seeks to identify and invest in those companies which offer the best trade off between the aspects of growth potential, risk element and the valuation of the equity. The fund has been following an active investment strategy with focus on companies which are registering rapid growth. The fund was launched in the year 2007 under the Equity Fund diversified category. Since its inception the fund has been recording consistency in the rate of returns earned, which is a result of better fund management by investing in current high performing equities.
Source: Swaraj Wealth Research
The one year and three year returns of Franklin India High Growth Companies fund has seen an at par and slightly higher growth in comparison to CNX 500 and Equity Funds Diversified category. The 1-year return is a high performing 33.67 % which is at par with the 33.73% of CNX 500 and 33.24 of Equity Funds Diversified category. The three year returns show a lesser growth return of 12.74 but still higher than CNX 500’s return of 11.64 and at par with Equity Funds Diversified category of 12.63 %. The five years returns are where the fund clearly shows an edge with returns of 23.09 % which is distinctively higher than the 14.93% and 17.38% percent of CNX 500 and Equity Funds Diversified category. The fund which is started in the year 2007 has shown a better performance in 10 years returns of 11.7% which is much higher than CNX 500’s 6.52% and slightly higher than the 9.51 of the other funds in Equity Funds Diversified category.
Source: Swaraj Wealth Research
The rolling return for the period of five years not only show a high returns for Franklin India High Growth companies fund but also comparatively higher returns with the Equity funds diversified category. For the five year period of 16th Jan 2013 - 16th Jan 2018, the return of the fund is 22.09% which is remarkably higher than the 17.33% returns by the funds in Equity Funds Diversified category. There is not much of variance over the five year period indicating stability in the growth of the fund with consistent returns every year hovering around 21-22%.
Franklin India High Companies Fund has demonstrated a consistent growth over the last 10 years and especially with higher growth rates than the industry when the 5 years returns are considered. If a long term, high growth potential is the criteria for investment, this growth fund is one of the best options to choose from.