Franklin Asian Equity Fund
Direct · GrowthAI Summary
Franklin Asian Equity Fund has delivered a 1Y SIP XIRR of 26.33%, well ahead of the category average of 10.64%, but its longer-term XIRR lags significantly, with 3Y at 10.96% versus the category's 16.22% and 5Y at 7.07% versus 17.45%. Against the NIFTY 50, the fund shows strong alpha of 29.37% over 1Y and 15.69% over 3Y, though alpha narrows to roughly 1% over 5Y and beyond. The fund's lump-sum CAGR has trailed the benchmark over 7Y, 10Y, and 15Y horizons, indicating recent outperformance rather than sustained long-term edge.
The fund exhibits a defensive profile with beta declining from 0.87 at 1Y to 0.51 at 15Y and consistently low downside capture, reaching 55.44% over 12Y. However, it has experienced 7 drawdown events exceeding 10%, with a maximum drawdown duration of 615 days and a lengthy 1,074-day recovery, signaling extended underwater periods. Calmar ratios of roughly 0.20 across longer horizons suggest modest risk-adjusted returns relative to drawdown risk.
The portfolio holds 30 stocks with a well-diversified top 10, where the largest position, ICICI Bank, is only 3.05% of NAV. Sector exposure is spread across Banks (5.6%), Pharmaceuticals (5.0%), Realty (3.5%), and Retailing (3.1%), with no single sector dominating. This diversified multi-sector approach, including names like Divi's Laboratories, Oberoi Realty, and Bharat Electronics, reduces single-stock and single-sector concentration risk.
The fund underperforms its sectoral/thematic category peers on SIP XIRR across 3Y, 5Y, 7Y, 10Y, and 12Y horizons, with the gap widest at 5Y (7.07% vs 17.45%). Its only clear category win is the 1Y XIRR of 26.33% versus 10.64%. Calendar year returns show high variability, ranging from 36.22% in 2017 to -13.78% in 2022, indicating inconsistent year-to-year performance.
This fund suits investors with a high risk tolerance and a long time horizon of 7-10 years or more, given its extended drawdown recovery periods and thematic exposure. It is best used as a satellite allocation within a broader diversified portfolio rather than a core holding, given its underperformance versus category peers over longer horizons. Investors should be comfortable with significant return variability across calendar years.
- Strong recent performance with 1Y SIP XIRR of 26.33%, nearly 2.5x the category average of 10.64%
- Consistently low downside capture versus NIFTY 50, falling from 73.36% at 1Y to 55.44% at 12Y, indicating strong downside protection
- Highly diversified portfolio of 30 stocks with the top holding at just 3.05% of NAV and no sector above 5.6%
- Significant underperformance versus category average SIP XIRR over 3Y to 12Y horizons, with the 5Y gap at 10.38 percentage points (7.07% vs 17.45%)
- Extended drawdown characteristics, including 7 events exceeding 10%, a 615-day max drawdown duration, and a 1,074-day recovery period
Generated on 27-10-2026, 2:14 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.60 L | 11.8% | -38.1% | 88.1% |
| 3 Years | ₹36.00 L | ₹40.82 L | 9.3% | -15.3% | 35.4% |
| 5 Years | ₹60.00 L | ₹74.07 L | 8.4% | -5.5% | 22.3% |
| 7 Years | ₹84.00 L | ₹1.06 Cr | 7.9% | -0.5% | 18.5% |
| 10 Years | ₹1.20 Cr | ₹1.64 Cr | 7.0% | 3.0% | 13.2% |
| 12 Years | ₹1.44 Cr | ₹2.45 Cr | 8.7% | 4.6% | 12.4% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 11.8% | 14.3% | 10.6% | -2.5% |
| 3 Years | 9.3% | 11.0% | 16.2% | -1.7% |
| 5 Years | 8.4% | 10.4% | 17.4% | -2.0% |
| 7 Years | 7.9% | 10.6% | 16.6% | -2.6% |
| 10 Years | 7.0% | 11.4% | 16.4% | -4.4% |
| 12 Years | 8.7% | 11.3% | 15.8% | -2.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 10.8% | 10.6% | -32.9% | 71.6% | 0.26 | 0.47 | 74% | — | — |
| 3 Years | 8.2% | 8.9% | -10.5% | 25.0% | 0.26 | 0.41 | 87% | — | — |
| 5 Years | 7.9% | 7.1% | 0.1% | 20.4% | 0.34 | 0.81 | 100% | — | — |
| 10 Years | 7.9% | 7.2% | 5.1% | 12.1% | 0.79 | 5.06 | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +28.56 | 0.85 | 108.5% | 70.1% | 19.3% | -12.0% |
| 3 Years | +15.94 | 0.71 | 86.5% | 64.5% | 22.2% | 6.2% |
| 5 Years | +1.40 | 0.68 | 72.3% | 67.0% | 7.1% | 5.3% |
| 7 Years | +1.51 | 0.59 | 65.5% | 60.7% | 10.1% | 10.0% |
| 10 Years | +1.34 | 0.57 | 62.6% | 57.5% | 10.0% | 10.3% |
| 12 Years | +1.42 | 0.56 | 60.6% | 55.1% | 9.3% | 9.1% |
| 15 Years | +0.71 | 0.51 | 56.1% | 50.9% | 8.7% | 9.4% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd | 3.05% |
| 2 | Divi's Laboratories Ltd | 2.72% |
| 3 | Torrent Pharmaceuticals Ltd | 2.23% |
| 4 | Oberoi Realty Ltd | 2.07% |
| 5 | Hindalco Industries Ltd | 1.87% |
| 6 | Eternal Ltd | 1.83% |
| 7 | Larsen & Toubro Ltd | 1.77% |
| 8 | Indian Hotels Co Ltd | 1.71% |
| 9 | Bharat Electronics Ltd | 1.63% |
| 10 | ABB India Ltd | 1.59% |