Why Invest in Franklin India Smaller Companies Fund?

A small-cap fund is considered to be the best alternative for an investor looking for high-growth opportunities. The reason being is that they have investments in such companies which are at their initial levels of establishment and have a lot more scope to grow higher. With a small market capitalisation, these entities build strong managerial capabilities to ensure greater profits for a wide establishment.

Franklin India Smaller Companies Fund is among the best-performing small-cap funds in India, which endeavour to provide the opportunities of gaining capital growth with the primary objective of appreciating investors’ wealth over a long-term period. It has made investments in the small- and mid-sized companies because of which it tends to offer exceptional profits during market upturns. Though the market volatility is quite high in this plan, the fund managers keep analysing the market to reduce the same for the benefit of investors. Here are the reasons why you would invest your money in this fund:

Market Performance and Ranking
The franklin smaller companies fund scheme is an outperformer in its category and has offered up to 88.8% absolute annual returns in the year 2014. At present, the three- and five-year returns on this plan are 34.80 and 30.00 percent respectively. Moreover, the scheme holds ‘Second’ rank in the ‘Small & Mid-Cap’ category by CRISIL for the quarter which ended in December 2016.

Offers Growth Opportunities
Franklin India Smaller Companies Fund has been outperforming its benchmark and category for a long time and has offered greater returns as of now. The scheme has investments in small-cap companies which include Finolex cables, Equitas Holding, Haria Exports, Yes Bank, and Guj Minerals, which are performing tremendously in the market. Thus, the chances to grow capital in this scheme are very high for the investors.

Fund Manager’s Expertise
The fund managers of the scheme are R. Janakiraman and Hari Shyamsunder who are having great expertise in managing funds. They have a focused strategy of making investments as per which they aim to invest in such companies where growth opportunities are extreme.

Portfolio Concentration
The scheme has been designed keeping in view the perspective of a long-term investor. They have made major investments in the equities to attain capital appreciation, while the remaining has been parked in the cash instruments assuring financial stability through regular income. Moreover, the sectors in which it has invested capital include finance, construction, engineering, chemicals, and services. They offer greater returns to make the portfolio highly productive.

So if you find this scheme feasible for your investment goals, then you must avail the free investing services of MySIPonline to start investing now. They have the best online investing solutions and tools which are aimed at making investment plans the best.