Franklin India Large and Mid Cap Fund

Franklin India Large and Mid Cap Fund has delivered steady long-term SIP returns, with 10Y XIRR of 14.13% and 5Y XIRR of 15.12%, though these trail the category averages of 16.82% and 18.04% respectively. Against the NIFTY 50, the fund shows consistent alpha across most windows, including 4.04% over 3Y and 3.45% over 7Y, with lump-sum CAGR beating the benchmark in every period. Recent performance is weaker, with 1Y XIRR of 9.54% underperforming the category average of 11.0%.

The fund exhibits a mildly defensive profile versus the NIFTY 50, with beta around 0.91-0.95 and notably strong downside capture of 86.5-90.2% across periods, indicating it falls less than the index. Upside capture of 90.9-94.2% means it also participates less in rallies, but the favorable capture asymmetry supports risk-adjusted returns, reflected in positive alpha up to 4.04%. Investors should note 8 drawdown events exceeding 10% historically, including a max drawdown period lasting 571 days with a 245-day recovery, typical of mid-cap exposure.

The 43-stock portfolio is reasonably diversified, with the top holding ICICI Bank at just 4.86% and the top 10 collectively under 36% of NAV. Banks dominate at 16.6% of the portfolio, followed by Retailing (7.1%) and Insurance (6.7%), providing meaningful financial sector concentration but balanced by autos, construction, healthcare, and consumer names. Holdings like Mahindra & Mahindra, Larsen & Toubro, and Vishal Mega Mart reflect the fund's large-and-mid-cap mandate.

The fund lags its category on SIP XIRR across all horizons, trailing the 3Y category average of 18.19% by roughly 3.2 percentage points and the 10Y average by 2.7 points. However, its consistency versus the NIFTY 50 benchmark is a clear positive, with positive alpha in five of seven windows and returns beating benchmark CAGR in every period examined. The gap versus peers suggests stronger category competition rather than outright underperformance against its own benchmark.

This fund suits investors seeking large-and-mid-cap exposure with a genuinely long time horizon of 7 years or more, given drawdown recovery periods that have exceeded a year. It is appropriate for those with high risk tolerance who can tolerate multi-year drawdowns like the 571-day peak-to-trough episode, but who want lower downside capture than a pure index approach. SIP investors should note the category underperformance and consider it as part of a diversified portfolio rather than a core standalone holding.

• Consistent alpha over the NIFTY 50, including 4.04% over 3Y and 3.45% over 7Y, with fund CAGR exceeding benchmark CAGR across all seven periods
• Favorable capture asymmetry with downside capture as low as 86.52% (15Y) versus upside capture of 90.89%, cushioning losses in weak markets
• Well-diversified 43-stock portfolio with the largest position at only 4.86% of NAV

• SIP XIRR underperforms the category average at every horizon, including 14.95% vs 18.19% over 3Y and 14.13% vs 16.82% over 10Y
• Recent 1Y XIRR of 9.54% trails the category average of 11.0%, and calendar year 2026 returned -9.33%, indicating weak current momentum