Franklin India Aggressive Hybrid Fund
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Business Overview
Franklin India Aggressive Hybrid Fund is designed for investors seeking a balanced approach to growth and stability. By combining equity and debt investments, this fund aims to provide capital appreciation while managing risk. It is ideal for those looking to invest for the long term, with a moderate risk appetite. This fund matters because it offers diversification and the potential for higher returns compared to traditional fixed-income investments, making it a smart choice for wealth creation.
- Balanced investment in equity and debt
- Ideal for long-term investors
- Moderate risk with growth potential
- Offers diversification benefits
- Managed by experienced professionals
Investment Thesis
Franklin India Aggressive Hybrid Fund stands out due to its credible promoter group, robust digital services growth potential, and attractive valuation compared to peers. This combination positions the fund as a compelling investment opportunity for Indian retail investors seeking balanced growth and stability.
- Strong backing from a reputable promoter group enhances trust and reliability.
- Significant growth potential in digital services aligns with market trends.
- Attractive valuation compared to peers offers a favorable entry point.
- Diversified portfolio strategy mitigates risks while aiming for capital appreciation.
- Consistent performance track record reinforces investor confidence.
Opportunity vs Risk
- Strong long-term growth potential
- Diversified investment across asset classes
- Tax efficiency for investors
- Access to professional fund management
- Market volatility affecting returns
- Interest rate fluctuations impact bonds
- High expense ratios compared to peers
- Potential for lower liquidity
Peer Perspective
Franklin India Aggressive Hybrid Fund trades at a discount compared to peers like HDFC Hybrid Equity Fund and Axis Hybrid Fund. A rerating could occur with improved margin stability and consistent growth in returns.
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10BusinessHighThe fund is invested in a diversified portfolio across sectors, but lacks a clear moat.
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10GrowthHighConsistent revenue and profit growth observed over the past few years.
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10ProfitabilityHighROE and ROCE are decent, but OCF is not consistently higher than net profit.
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8ValuationHighValuation ratios are slightly above peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is stable, but there are concerns regarding disclosures.
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5DriversGoodGrowth catalysts are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.