Franklin India Bluechip Fund - Truly an all-weather performer!

Swapnil Suvarna feels this fund needs to be a core holding in your client’s portfolio considering its consistency and durability in terms of performance

Launched in December 1993, Franklin India Bluechip is one of the oldest and largest equity diversified funds. The fund strategy is to generate steady and consistent returns through investment in well established, large size blue chip companies. Benchmarked against BSE Sensex, the fund is managed jointly by Anand Radhakrishnan and Anand Vasudevan.

The major portion of the fund portfolio is allocated towards growth blue-chips since it is mandated to invest essentially in large-cap companies that ensure reasonable liquidity. However, the fund manager has not shied away from value investing in emerging opportunities on a consistent basis but to control risk, the investment has been limited.  

True to its name, the fund has generated reasonable alpha to its investors during the bull phase while containing losses in bear markets. Remarkably, the fund has remained fully invested in equities across market cycles, with cash levels not going over 11 percent of the portfolio even during volatile times. The fund’s smart bargain buying in out-of-favor stocks/sectors have done wonders. Moreover, the fund manager has avoided momentum sectors such as real estate. Instead the fund prefers those sectors/equities that are consumption and investment driven.

Overall, the fund has shown excellent downside protection and the ability to benefit from market rallies earlier than its peers. The fund manager’s conservative approach makes it a more favorable investment option for those investors who wish to generate superior wealth with minimum risk. It has emerged as an all weather outperformer over the past two decades having endured many stormy seasons.