Last Updated on December 29, 2021 at 5:10 pm
Franklin India Bluechip Fund was launched on Dec 1993. It is the tenth oldest mutual fund currently open for subscription. It is the go-to fund for any analyst who loves backtesting and you would have seen several articles about the fund here as well. It is shocking to learn that the fund currently has a one-star rating at Value Research. A look at its journey and what current investors should do.
The one-star rating signified poor performance over a 3-5 year trailing period compared to category peers. This is merely a motivation to look closely. What matters is the fund’s performance against a benchmark.
The fund had an AUM of nearly Rs. 9000 Crores in July 2017 and it has currently dropped to Rs. 6581 Crores. The NAV moved up only by about 0.2% during this period. So clearly investors have voted with their foot. The trailing return performance shown in the table is quite appalling.
Franklin India Bluechip Fund: Trailing Returns
| Scheme Name | NIFTY 50 – TRI | Franklin India Bluechip | NIFTY 100 – TRI |
| 1 Year | 14.8 | 4.9 | 13.5 |
| 2 Years | 8.2 | -0.2 | 6.7 |
| 3 Years | 13.7 | 6.8 | 13.1 |
| 4 Years | 12.1 | 7.0 | 12.0 |
| 5 Years | 8.8 | 6.7 | 9.2 |
| 6 Years | 12.8 | 11.1 | 13.4 |
| 7 Years | 12.5 | 10.8 | 13.1 |
| 8 Years | 12.1 | 10.3 | 12.6 |
| 9 Years | 8.7 | 7.9 | 8.9 |
| 10 Years | 11.0 | 10.5 | 11.4 |
| 11 Years | 14.8 | 14.4 | 15.5 |
| 12 Years | 7.4 | 8.1 | 7.9 |
| 13 Years | 10.5 | 10.5 | 11.0 |
| 14 Years | 13.4 | 13.5 | 13.8 |
| 15 Years | 14.7 | 15.1 | 15.0 |
| 16 Years | 14.8 | 16.0 | 15.4 |
| 17 Years | 17.6 | 20.1 | |
| 18 Years | 16.5 | 19.8 | |
| 19 Years | 14.2 | 17.4 | |
| 20 Years | 13.0 | 17.3 |
As on 5th Nov 2019, Franklin Bluechip fund has not beaten the Nifty for the last 11 years! One can argue that the disparity in the movement of the NIfty and other indices (eg Nifty Next 50, Nifty Mid cap 150 and Nifty small cap 250) since Jan 2018 is a reason as shown in the image below.
🔥Secure your future with our Robo-advisory tool trusted by over 3,000 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
Franklin Bluechip vs Axis Bluechip
One reason for the underperformance with respect to category topper Axis Bluechip – Reviewed here: Axis Bluechip Fund: Can this be used to beat Nifty?– is the large cap and mid cap allocation.
Summary
Franklin India Bluechip is one of the AMC’s flagship fund (along with prima and prima plus) and they would certainly be aware of this slip in performance and drop in AUM. This fund is practically unknown to the new generation of mutual fund investors who started a few years ago.
Languishing at the bottom of a category is a bigger problem than inability to beat the benchmark. Fund manager Anand Radhakrishnan certainly has the skill and experience to turn it around but cannot complain if existing investors lose patience and exit.
If you are an investor, you can switch to an aggressive-hybrid fund if you like downside protection (fund falls less than an index) or a Nifty 50/Sensex Index fund. Meanwhile, analysts like this author will watch this fund with keen interest.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!(Link takes you to our email sign-up form)
Use our Robo-advisory Tool to create a complete financial plan! More than 3,000 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), as well as non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool would help anyone aged 18 to 80 plan for their retirement, as well as for six non-recurring and four recurring financial goals, with a detailed cash flow summary.
🔥Join our community of 9000+ users! 🔥Avail massive discounts on our courses + freefincal investor circle!
Track your mutual funds and stock investments with our Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds, ETF screeners, as well as momentum and low-volatility stock screeners.
You can follow our articles on Google News
We have over 1,000 videos on YouTube!
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth!
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalised investment advice. We can write a detailed article without mentioning your name if you have a generic question.
About The Author
Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 14 years of experience publishing news analysis, research and financial product development.
Connect with him via Twitter(X) LinkedIn YouTube
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market condition!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
Our book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Connect with us on social media
- Twitter @freefincal
- Subscribe to our YouTube Videos
Our publications
You Can Be Rich Too with Goal-Based Investing
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
Your Ultimate Guide to Travel
