Focus on Big Infra Cos, Banks is Key
Franklin Build India Fund
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
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