[sgiitk]

My experience with sectoral funds has been poor. So now I may look at Large Cap, Mid Cap, and that is about all. I mostly prefer diversified funds.

[yosbert]

I have never grasped the logic of sectoral funds. If a given sector is poised to generate good returns what is stopping a good diversified fund manager from investing in that sector? On the other hand, why tie the hands of your fund manager from shifting money to more profitable sectors when the chosen sector is no longer the flavor of the season.

[ghodlur]

Any recommendations to a good mutual fund scheme for the Franklin Templeton fund house. The ones I have zeroed in are
1) Franklin India Flexi cap
2) Franklin India High growth companies
3) Franklin India smaller companies

I am also thinking of starting a smaller amount of SIP in Franklin India Pension fund. The returns for this fund are good over a 3 year horizon. Its basically a hybrid debt fund. Any views??

[archat68]

My question is regarding income tax on mutual fund investments.

From my understanding if I invest in non-ELSS funds and redeem it after one year the capital gain will be tax exempted.

Am I correct?

[sgiitk]

Originally Posted by ghodlur

Any recommendations to a good mutual fund scheme for the Franklin Templeton fund house. The ones I have zeroed in are
1) Franklin India Flexi cap
2) Franklin India High growth companies
3) Franklin India smaller companies

I am also thinking of starting a smaller amount of SIP in Franklin India Pension fund. The returns for this fund are good over a 3 year horizon. Its basically a hybrid debt fund. Any views??

I will say a few things:

Franklin-Templeton are an excellent though conservative fund house.
High growth to me implies a higher than normal risk.
I was with their Pension plan for over five years, a good conservative fund. Has 80 benefits. There is a redemption premium before the age of 58.

I will prefer something like ICICI Pru Balanced Advantage even though it does not enjoy 80C. Another, old time favourite is HDFC Prudence.

[akj123]

Originally Posted by sgiitk

I will say a few things:

Franklin-Templeton are an excellent though conservative fund house.
High growth to me implies a higher than normal risk.
I was with their Pension plan for over five years, a good conservative fund. Has 80 benefits. There is a redemption premium before the age of 58.

I will prefer something like ICICI Pru Balanced Advantage even though it does not enjoy 80C. Another, old time favourite is HDFC Prudence.

Franklin does have some good performing funds though, like Prima Plus. It is a chart-topper in it's category (performance) and fairly consistent across periods like 3/5 years.

[amit]

Originally Posted by ghodlur

The ones I have zeroed in are

2) Franklin India High growth companies
3) Franklin India smaller companies

I have been investing via SIP for past 1 year in both High growth & small companies funds. High growth is a diversified fund & as per money control ranked number 1 in it's category. However, in my portfolio, the 1 year returns are nowhere close to what money control is showing. Last time I checked, returns from high growth are half of small companies in my portfolio. Having said that, if your investing for at least 3 years, you can comfortably put your money in the funds identified by you.

Just 1 question. why are you putting all your money in 1 fund house? Why not spread out across different ones?

[ghodlur]

Originally Posted by amit

Just 1 question. why are you putting all your money in 1 fund house? Why not spread out across different ones?

I am not. I have invested in funds from other mutual fund houses other than Franklin Templeton. It has to be one of the 3 options I mentioned.

One of my office colleague who has knowledge about MF investing (atleast more than me) says the thumb rule is have a MF from 3 categories - Large Cap, Mid cap and small cap, small cap. This way when the market moves in upward direction either one or all three move up significantly. If one invests in Largecap+Midcap type funds, then the returns on daily basis are somewhat negated as all 3 indices do not move parallelly. Is this a true logic??

[S_U_N]

I used to think that we should distribute money across Fund Houses. Now-a-days, I think we should focus more on the Fund Manager. He/She is the one (along with the team of 10-15 people) who is making money for us.
So, for example:

If Roshi Jain is doing a good job, all her funds will be doing good.
If Kenneth Andrade has quit IDFC, we don't know what is the long term impact on the funds managed by him.

[sgiitk]

Originally Posted by akj123

Franklin does have some good performing funds though, like Prima Plus. It is a chart-topper in it's category (performance) and fairly consistent across periods like 3/5 years.

Somehow I have been unlucky with both Prima and Prima Plus. So am avoiding them both.

[sgiitk]

Originally Posted by S_U_N

If Kenneth Andrade has quit IDFC, we don't know what is the long term impact on the funds managed by him.

Thanks for the into about the SME guru - Andrade. I have just started a long tern SIP for my son in the Premier. Now I will have to keep an eagle eye. Depends on what happens to his team. Things can be Ok as happened when L&T took over Fidelity. I kept an eye on them for a year or so and then restarted investing in them.

[Parth46]

Originally Posted by ghodlur

Any recommendations to a good mutual fund scheme for the Franklin Templeton fund house. The ones I have zeroed in are
1) Franklin India Flexi cap
2) Franklin India High growth companies
3) Franklin India smaller companies

I am also thinking of starting a smaller amount of SIP in Franklin India Pension fund. The returns for this fund are good over a 3 year horizon. Its basically a hybrid debt fund. Any views??

It's totally your call, but I'd say go for it.

I really admire FT as a fund house and have both these funds, the last two, they've delivered excellent returns to me. I can't recommend them enough.

I have an SIP in Franklin India TaxShield, and some lump-sum investments in High Grth and SmCos Funds. Both have done very well. I make it a point to pump in small lump sums whenever the market goes down at various intervals and so far it's worked well for me.

If you've shortlisted SmallerCos in the mid cap space, I'd suggest take a look at DSP BlackRock MicroCap fund. A truly blockbuster fund which has delivered chart-topping numbers for me. Wouldn't hurt to take a look.

Disclaimer: I always invest from a pretty long term perspective in equity as I have a separate debt portfolio to take care of short-term/near-future expenses/goals. Thus, am able to stomach the short-term volatility of these funds better, which can be scary for some people. But if you invest with a longer time-frame, guess you're good to go with any of these.

Cheers,
Parth

[S_U_N]

Kenneth Andrade gives a different perspective.

I get the feeling that the bull run is over in general. It is time to identify the hidden gems and put money on those.

https://www.valueresearchonline.com/....asp?str=28419

[nowwhat?]

Originally Posted by S_U_N

Kenneth Andrade gives a different perspective.

I get the feeling that the bull run is over in general. It is time to identify the hidden gems and put money on those.

https://www.valueresearchonline.com/....asp?str=28419

It is an illuminating article. I read it yesterday.

But what Kenneth Andrade said was "I believe that people are building in too strong earnings growth expectations too early in the cycle. People say that capex cycle will pick up. But from our numbers, it is clear that even `10 lakh crore of capex may not move the needle much. Therefore, where is the 20 per cent earnings growth going to come from?"

I had mentioned it in some other post in the stocks page on Team-BHP some time back as well. I doubt much will happen before the 2nd half of 2016, though I expect a slight uptick later this year.

The fact is that India needs major structural reform like Land Acquisition, Mudra bank, Infrastructure spending, GST, etc. Plus interest rates are way too high and money supply too tight. So many moving parts that it will take a year or so to build.

All in all, a good time to invest in mutual funds if you are a believer in the India story.

[S_U_N]

Originally Posted by nowwhat?

...

All in all, a good time to invest in mutual funds if you are a believer in the India story.

But it appears that if I put in money for a short term (1-2 years), I am probably not going to get the same result as I got for the last two years.

2013-15 has been pretty solid with approximately 35% annual returns.


So, then the only option is to find multi-baggers and invest directly in them (and not into MF's).