Fo­cus on Big In­fra Cos, Banks is Key

Franklin Build In­dia Fund

The Economic Times - - Smart - PORT­FO­LIO CHANGE

In the past two years, the Modi-led govern­ment has shown keen in­ter­est in ush­er­ing in re­forms in the in­fras­truc­ture sec­tor. This au­gurs well for schemes which have a ded­i­cated fo­cus on in­fras­truc­ture themes di­rectly or in­di­rectly. Among the schemes which have strong fo­cus on in­fras­truc­ture, Franklin Build In­dia Fund is one of the best schemes for re­tail in­vestors. In­vestors can in­vest in the scheme with a hori­zon of at least five years.

One of the main dis­tin­guish­ing fac­tors be­tween Franklin Build In­dia and other in­fras­truc­ture-fo­cused schemes is the way it plays the theme in its port­fo­lio. It is es­ti­mated that close to 25% of its port­fo­lio com­prises banks. Banks fund cap­i­tal ex­pen­di­ture of pri­vate com­pa­nies and hence, they also serve as a proxy play for in­fra theme. Be­sides, the scheme also in­vests in key in­fra com­pa­nies, which not only gen­er­ate high cash­flow from oper­a­tions but also are mar­ket lead­ers in their re­spec­tive sec­tors. A few prom­i­nent com­pa­nies in the scheme’s port­fo­lio are UltraTech Ce­ment, Maruti, HDFC Bank and State Bank of In­dia.

In the past three-year and five-year pe­ri­ods, it has given 30% and 18.8% re­turns, while Nifty 500 has given 13.1% and 7% in the same pe­riod. Hei­del­berg Ce­ment In­dia

New En­trants Com­plete Ex­its Gate­way Distri­parks In­crease in Al­lo­ca­tion

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.