Franklin India Conservative Hybrid Fund
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Business Overview
Franklin India Conservative Hybrid Fund is designed for conservative investors seeking a balanced approach to wealth creation. By combining equity and debt investments, this fund aims to provide stability and moderate growth, making it ideal for those looking to preserve capital while earning reasonable returns. With a focus on risk management and a disciplined investment strategy, this fund stands out in the crowded market, ensuring your investments are in capable hands.
- Balanced investment strategy with equity and debt
- Ideal for conservative investors
- Focus on capital preservation
- Disciplined risk management approach
- Aims for moderate growth with stability
Investment Thesis
Franklin India Conservative Hybrid Fund stands out due to its reputable promoter group, robust digital services growth potential, and attractive valuation compared to peers. This fund offers a balanced approach to equity and debt, making it a compelling choice for conservative investors seeking stable returns.
- Strong backing from Franklin Templeton, a globally recognized asset management firm.
- Significant growth in digital services enhances accessibility and investor engagement.
- Attractive valuation metrics compared to similar funds in the market.
- Focus on capital preservation while providing potential for moderate growth.
- Ideal for risk-averse investors looking for a stable investment avenue.
Opportunity vs Risk
- Stable returns in volatile markets
- Diversified investment approach
- Potential for capital appreciation
- Tax benefits on long-term gains
- Strong fund management team
- Market fluctuations impact returns
- Interest rate changes affect bonds
- Lower returns in bullish markets
- Liquidity risk during redemption
- Management fees may reduce profits
Peer Perspective
Franklin India Conservative Hybrid Fund trades at a slight premium compared to peers like HDFC Hybrid Fund and ICICI Prudential Hybrid Fund. A rerating could occur with improved margin stability and consistent growth in AUM.
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10BusinessHighThe fund operates in a stable sector with a clear investment model.
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10GrowthHighConsistent revenue and profit growth observed over the past few years.
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10ProfitabilityHighROE and ROCE are above industry averages, but OCF is slightly lower than net profit.
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8ValuationHighValuation metrics are in line with peers, but slightly on the higher side.
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7BalanceHighDebt levels are manageable, with good liquidity and reserves.
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6GovernanceGoodPromoter holding is stable, but some concerns about disclosures.
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5DriversGoodGrowth catalysts are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.