Franklin India Focused Equity Fund
Direct · GrowthAI Summary
Franklin India Focused Equity Fund has delivered a 5Y SIP XIRR of 17.44% and 10Y SIP XIRR of 16.64%, beating the category averages of 15.51% and 15.70% respectively, though the 1Y XIRR of 8.4% trails the category's 11.15%. Against the NIFTY 50, the fund shows consistent positive alpha over longer horizons, including 3.99% over 7Y and 5.08% over 15Y, with lump-sum CAGRs beating the benchmark across all periods shown. The recent 1Y period is a clear weak spot, with the fund's -15.45% CAGR lagging the NIFTY 50's -12.71%.
The fund's beta of roughly 0.90-0.98 across horizons indicates it moves closely with the market but with slightly lower volatility, and downside capture below 100% in most periods (e.g., 88.05% over 5Y) shows it falls less than the benchmark. However, the 1Y period shows downside capture of 97.7% with upside capture of only 92.58%, meaning recent losses were nearly as deep as the market's while gains lagged. Seven drawdown events exceeding 10% and a max drawdown recovery of 240 days indicate meaningful interim volatility that investors must be prepared to endure.
The portfolio is concentrated in banks, which account for 25.1% of assets across the top three holdings — ICICI Bank (8.57%), Axis Bank (7.66%), and HDFC Bank (7.62%). With only 28 total holdings and a focused mandate, the top 10 positions make up roughly 57% of the portfolio, spanning telecom, retailing, pharma, IT, and autos. This concentrated approach amplifies both the potential upside and the sector-specific risk, particularly from the large banking allocation.
The fund outperforms the category average SIP XIRR over 3Y (16.08% vs 15.8%), 5Y (17.44% vs 15.51%), 7Y (16.15% vs 15.06%), and 12Y (15.78% vs 15.12%), demonstrating long-term consistency. Its 12Y rolling return mean of 17.71% further supports durable long-horizon performance. The main inconsistency is the short term, where the 1Y XIRR of 8.4% falls well short of the category's 11.15%.
This fund suits investors with a high risk tolerance and a horizon of at least 5-7 years, given its concentrated 28-stock portfolio and history of multiple double-digit drawdowns. It is appropriate for those seeking long-term wealth creation with a proven ability to beat both its benchmark and category over extended periods. Investors needing short-term stability or uncomfortable with banking-sector concentration should look elsewhere or size the position modestly within a diversified portfolio.
- Consistent long-term outperformance with positive alpha over the NIFTY 50 across 3Y to 15Y horizons, including 5.08% alpha over 15 years
- SIP XIRR beats category averages across 3Y, 5Y, 7Y, 10Y, and 12Y horizons, with the 5Y gap of nearly 2 percentage points (17.44% vs 15.51%)
- Favorable downside capture below 100% over most periods (e.g., 88.05% over 5Y), indicating better-than-market resilience in falling markets
- Recent underperformance: the 1Y fund CAGR of -15.45% lagged the NIFTY 50's -12.71%, with upside capture of only 92.58% and SIP XIRR of 8.4% below the category's 11.15%
- Heavy sector concentration in banks at 25.1% of the portfolio, with the top three holdings all being private banks, exposing investors to banking-sector downturns
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 | ₹12.85 L | 21.0% | -58.9% | 120.4% |
| 3 Years | ₹36.00 L | ₹45.99 L | 16.3% | -21.9% | 36.7% |
| 5 Years | ₹60.00 L | ₹91.82 L | 16.0% | -8.6% | 29.9% |
| 7 Years | ₹84.00 L | ₹1.52 Cr | 16.1% | 0.8% | 24.5% |
| 10 Years | ₹1.20 Cr | ₹2.89 Cr | 16.7% | 11.6% | 20.3% |
| 12 Years | ₹1.44 Cr | ₹4.14 Cr | 15.9% | 11.9% | 19.3% |
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 | 21.0% | 14.3% | 11.2% | +6.8% |
| 3 Years | 16.3% | 11.0% | 15.8% | +5.3% |
| 5 Years | 16.0% | 10.4% | 15.5% | +5.6% |
| 7 Years | 16.1% | 10.6% | 15.1% | +5.6% |
| 10 Years | 16.7% | 11.4% | 15.7% | +5.2% |
| 12 Years | 15.9% | 11.3% | 15.1% | +4.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 20.2% | 12.6% | -32.9% | 103.5% | 0.53 | 1.97 | 82% | — | — |
| 3 Years | 17.3% | 16.9% | -6.4% | 36.7% | 1.30 | 5.76 | 97% | — | — |
| 5 Years | 16.6% | 16.4% | -0.8% | 31.1% | 1.68 | 13.10 | 100% | — | — |
| 10 Years | 16.8% | 16.4% | 12.1% | 21.2% | 4.19 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -3.09 | 0.98 | 92.6% | 97.7% | -15.4% | -12.7% |
| 3 Years | +1.21 | 0.95 | 94.2% | 92.2% | 6.7% | 5.4% |
| 5 Years | +2.87 | 0.92 | 92.3% | 88.0% | 7.5% | 4.5% |
| 7 Years | +4.00 | 0.92 | 95.1% | 90.7% | 13.7% | 10.0% |
| 10 Years | +2.27 | 0.93 | 96.0% | 93.0% | 12.0% | 10.0% |
| 12 Years | +3.82 | 0.93 | 95.6% | 90.8% | 12.7% | 9.1% |
| 15 Years | +5.08 | 0.90 | 94.4% | 87.8% | 14.1% | 9.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | ICICI Bank Ltd | 8.57% |
| 2 | Axis Bank Ltd | 7.66% |
| 3 | HDFC Bank Ltd | 7.62% |
| 4 | Bharti Airtel Ltd | 5.91% |
| 5 | Eternal Ltd | 5.84% |
| 6 | Reliance Industries Ltd | 5.70% |
| 7 | Sun Pharmaceutical Industries Ltd | 5.15% |
| 8 | Tata Consultancy Services Ltd | 4.42% |
| 9 | Interglobe Aviation Ltd | 3.66% |
| 10 | Maruti Suzuki India Ltd | 3.54% |