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Franklin Templeton MF followed a focused bottom-up approach: Roshi Jain

Avoiding momentum and focusing on quality at a reasonable price has helped Roshi Jain of Franklin Templeton Mutual Fund emerge a winner

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BS  |  Mumbai 

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Employees of a foreign exchange trading company work in front of monitors displaying television news on Britain's EU referendum and the Japanese yen's exchange rate against British pound (C) and the U.S. dollar (L) in Tokyo, Japan. Photo: Reuters

Multi-cap funds have gained favour among investors and distributors in the past two years owing to their flexibility to invest in stocks across market capitalisations. Fund managers get the leeway to tilt the portfolio towards large-, mid- or small-cap shares depending on a host of factors.

Franklin India Focused Equity, a multi-cap fund, has a large-cap lean, comprising about two-thirds of its portfolio. Fund manager Roshi Jain, however, clarifies that the fund is market-cap agnostic, with no pre-defined percentage for large- or mid- or small-cap allocation.testing.. we are here....

“The fund dynamically manages its market cap allocation based on the risk-reward offered by the stocks at any point in time. It employs a bottom-up oriented process and if it is able to find more large-cap stocks meeting the fund house’s criteria, the portfolio will be large-cap weighted,” she explains.

The large-cap bias seems to have stood the fund in good stead in the past year, given the battering received by mid- and small-cap stocks. For the 12 month period ended June 30, 2019, the scheme has returned 14.43 per cent, 7.8 percentage points higher than its benchmark IISL 500 TR INR. This was in a period when the mid- and small-cap indices fell 2.9 per cent and 13.6 per cent, respectively. January-March this year was the best quarter for the fund, with returns of nearly 9 per cent. The fund had assets of Rs 8,183 crore as on July 31, 2019.

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First Published: Mon, September 14 2020. 19:22 IST
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