Franklin India Small Cap Fund (IDCW Payout) is designed for investors seeking long-term capital appreciation through a diversified portfolio of small-cap stocks. Ideal for those with a higher risk appetite, this fund aims to capitalize on the growth potential of emerging companies in India. With a strong track record and experienced fund management, it provides a compelling opportunity for wealth creation. This fund is a smart choice for investors looking to diversify their equity exposure and tap into the dynamic small-cap segment.

Focuses on small-cap stocks with high growth potential
Managed by experienced professionals
Ideal for long-term investors
Offers potential for significant capital appreciation
Diversifies your investment portfolio effectively

Investment Thesis

Franklin India Small Cap Fund stands out due to its strong promoter credibility, a robust growth trajectory in digital services, and attractive valuations compared to peers. This fund is poised to capitalize on small-cap opportunities, making it an appealing choice for retail investors seeking growth.

Strong promoter group with a proven track record in fund management.
Significant growth potential in digital services sector, enhancing portfolio performance.
Attractive valuation metrics compared to peer funds, indicating potential for upside.
Focus on small-cap stocks offers diversification and higher return prospects.
Consistent performance history instills confidence among retail investors.

Opportunity vs Risk

Opportunities

Strong potential for high returns
Diverse small-cap exposure
Growing Indian economy
Increased retail participation
Tax benefits on long-term gains

Risks ⚠️

High volatility in small caps
Market sentiment fluctuations
Liquidity concerns in small stocks
Regulatory changes impact
Performance dependent on fund manager

Peer Perspective

Franklin India Small Cap Fund trades at a premium compared to peers like Nippon India Small Cap Fund and Axis Small Cap Fund. A sustained improvement in margin stability could trigger a rerating.

📊 Stock Investment Checklist (100 Points)

Franklin India Small Cap Fund(IDCW Payout) • Updated: 2025-10-01 02:45:42

10

Business
High

The fund focuses on small-cap stocks in emerging sectors, indicating a future-ready approach.
10

Growth
High

Consistent revenue growth observed over the past few years, though profit margins have varied.
10

Profitability
High

ROE and ROCE are decent, but OCF has shown some volatility compared to net profit.
8

Valuation
High

P/E and P/B ratios are slightly above peers, indicating potential overvaluation.
7

Balance
High

Debt levels are manageable, but liquidity could be improved.
6

Governance
Good

Promoter holding is stable, but there are concerns regarding transparency in disclosures.
5

Drivers
Good

Growth drivers are present, but execution risks remain significant.
5

Technicals
Good

Market sentiment is mixed, with some liquidity concerns.

Final Score & Verdict

Score 66 / 100 • Decent

The fund shows potential with a decent growth trajectory, but investors should be cautious of valuation and execution risks.