Franklin India Focused Equity Fund vs. Aditya Birla Sun Life: A Detailed Comparison

If you’ve been in the investment block for some time, you are probably aware of what equity, hybrid and debt funds largely are.

However, not many of you know about focused funds.

Let me tell you more about them.

A focused fund holds a relatively small variety of stocks. They focus on a limited number of stocks in a limited number of sectors, rather than holding a diversified mix of equity positions.

Today, we will compare Franklin India Focused Equity Fund and Aditya Birla Focused Equity Fund and see which one can be a better investment choice for you.

Franklin India Focused Equity Fund vs. Aditya Birla Sun Life Focused Equity Fund

Let’s look at few of the key points of comparison between these two focused funds.

1. Key Details

Particulars Franklin India Focused Equity Fund Aditya Birla Focused Equity Fund Fund House Franklin Templeton Mutual Fund Aditya Birla Sun Life Mutual Fund Scheme Open Ended Open Ended Class Equity Equity Scheme Benchmark NIFTY 500 TRI NIFTY 50 Total Return Category Equity- Multi Cap Equity- Large Cap Inception Date 01/10/2013 01/01/2013 NAV (Rs./unit) 42.8 64.0 Total Fund Size (In Rs. Crores) 7,356 crores 4,063 crores Fund Manager Roshi Jain Mahesh Patil Availability of SIP Yes Yes Minimum Initial Investment 5,000 1,000 Expense Ratio 0.97% 1.26% Risk Moderately High Moderately High Options Growth Blend Value Growth Blend Value

2.Investment Objective

Franklin India Focused Equity Fund

It is an open-end diversified equity fund that seeks to achieve capital appreciation through investments in Indian companies/sectors with a high growth rate potential.

Unlike other funds under Franklin India, this fund adopts a growth style of investing and follows a top-down (macro analysis to identify sectors) and bottom-up approach (micro analysis to pick stocks within these sectors).

Aditya Birla Sun Life Focused Equity Fund

Aditya Birla Focussed Equity Fund seeks to provide medium to long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity-related securities of the top 100 companies as measured by market capitalization.

3. Investment Strategy

Franklin India Focused Equity Fund and Aditya Birla Sun Life Focused Equity Fundare open-ended schemes which give flexibility to the investors. The schemes aim for long-term capital appreciation for the investors.

The managers after careful analysis of the macroeconomic factors and the sector of operations of various companies determine the best company to invest in, based on their valuation and investment rationale.

Both the schemes follow growth blend value.

The asset allocation of the schemes are as follows:

Particulars Small Cap Mid Cap Large Cap Cash Franklin India Focused Equity Fund 2.7% 21.7% 61.2% 7.2% Aditya Birla Focused Equity Fund _ 4.2% 90% 0

Also Read: SBI Bluechip vs Reliance Large Cap – which is the better fund?

4.Returns

Returns 1-Year 3-Year 5-Year Franklin India Focused Equity Fund 10.8% 13.1% 26.9% Aditya Birla Focussed Equity Fund 9.7% 14.2% 21.9%

Franklin India Focused Equity Fund

Returns 1-Year                   3-Year 5-Year Franklin India Focused Equity Fund 10.8% 13.1% 26.9% NIFTY 500 TRI 16.332% 15.84% 20.42%

Aditya Birla Focussed Equity Fund

Returns 1-Year                   3-Year 5-Year Aditya Birla Focussed Equity Fund 9.7% 14.2% 21.9% NIFTY 50 Total Return 19.40% 15.08% 17.82%

5. Portfolio Allocation (Top 10 Holdings)

Franklin India Focused Equity Fund

Name % of Assets Sector Instrument HDFC Bank Ltd. 9.5% Financial Services Equity State Bank of India 9.2% Financial Services Equity ICICI Bank Ltd. 8.4% Financial Services Equity Axis Bank Ltd. 7.5% Financial Services Equity Cash 7.2% Current Assets Cash Bharti Airtel Ltd. 6.2% Telecom Equity Indian Oil Corp. Ltd. 4.4% Energy Equity Tata Motors- DVR 4.3% Automobile Equity Abbott India Ltd. 4.1% Pharma Equity Ultratech Cement Ltd. 3.6% Cement & Cement Products Equity

Aditya Birla Focused Equity Fund

Name % of Assets Sector Instrument HDFC Bank Ltd. 9.4% Financial Services Equity Infosys Ltd. 6.4% IT Equity ICICI Bank Ltd. 6.0% Financial Services Equity ITC Ltd. 5.7% Consumer Goods Equity L&T Ltd. 5.3% Construction Cash Maruti Suzuki India Ltd. 4.3% Automobile Equity HDFC Ltd. 3.8% Financial Services Equity HCL Technologies 3.3% IT Equity Dabur India Ltd. 3.3% Consumer Goods Equity Yes Bank Ltd. 3.2% Financial Services Equity

6.Fund Manager

Franklin India Focused Equity Fund

Ms. Roshi Jain, CFA serves as an Assistant Vice President, Equities Research Analyst, and Co-Portfolio Manager at Franklin Templeton Asset Management (India) Private Limited and its various funds.

Ms. Jain is responsible to provide research support for cement, construction, engineering, retail and the power sectors for India and the ASEAN region.

She served as an Equity Analyst at Goldman Sachs Group Inc., Research Division.

Prior to joining Franklin, she has worked in Goldman Sachs (Financial Analyst) and Wipro Ltd. (Internal Auditor).

She has completed her Chartered Accountancy, CFA and has also perused an MBA from IIM Ahmedabad.

Aditya Birla Sun Life Focused Equity Fund

Mr. Mahesh Patil, (CFA) serves as a Co-Chief Investment Officer and Fund Manager of Birla Sun Life AMC Limited.

Mr. Patil serves as Fund Manager and Co-Chief Investment Aditya Birla Sun Life Mutual Fund.

Mr. Patil is a part of the Birla Sun Life AMC’s Limited equity team. He joined Birla Sun Life Asset Management in October 2005.

Mr. Patil has extensive experience in fund management, equity research, and corporate finance.

Previously, he served in the Business Strategy and Corporate Finance division at Reliance Infocomm Ltd.

He also served as a Senior Research Analyst at Motilal Oswal Securities Ltd and as a Senior Research Analyst at Parag Parikh Financial Advisory Services Ltd.

Mr. Patil is a Chartered Financial Analyst charter holder. He received an MMS degree from Jamnalal Bajaj Institute of Management Studies in 1993.

Mr. Patil also earned a BE in Electrical Engineering from Veermata Jijabai Technological Institute in 1989.

What are your other options?

SBI Focussed Equity Fund

Investment Objective

To provide investors maximum growth opportunity through equity investments in stocks of growth-oriented sectors of the economy.

There are five sub-funds dedicated to specific investment themes viz. information technology, pharmaceuticals, FMCG, contrarian (investment in stocks – currently out of favor) and emerging businesses.

Launch Date 01/10/2013 Fund Category Focused Assets Under Management (AUM) 2,742 crores Scheme Type Open Ended Scheme Benchmark S&P BSE 500 TR Fund Manager R. Srinivasan Expense Ratio 1.29% Riskometer Moderately High Fund House SBI Mutual Fund

Historical returns of the fund have been given below:

Time Duration Returns 1-Year 20.4% 3-Year 17.1% 5-Year 25.3%

Axis Focused 25 Fund

Investment Objective

To generate long-term capital appreciation by investing in a concentrated portfolio of equity & equity related instruments of up to 25 companies.

Launch Date 01/10/2013 Fund Category Focused Assets Under Management (AUM) 4,724 crores Scheme Type Open Ended Scheme Benchmark NIFTY 50 Total Return Fund Manager Jinesh Gopani Expense Ratio 1.33% Riskometer Moderately High Fund House Axis Mutual Fund

Historical returns of the fund have been given below:

Time Duration Returns 1-Year 23.3% 3-Year 21.0% 5-Year 24.1%

Conclusion

Equity funds are the type of funds which weigh high on the risk parameter in an individual’s portfolio. These funds can provide gains but could also lead to losses in the turn of the market.

An investor must identify his/her goal and objective before investing in any of the stated funds.

An investor who at the present moment is in a quandary might invest in these funds (lump sum or through SIPs) to pursue his/her goals of long-term capital appreciation.

Happy Investing!

Disclaimer:  The views expressed in this post are that of the author and not those of Groww