Franklin India Aggressive Hybrid Fund(IDCW)
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Business Overview
Franklin India Aggressive Hybrid Fund (IDCW) is designed for investors seeking a balanced approach to growth and income. By investing in a mix of equities and fixed income, this fund aims to provide capital appreciation while managing risk. It is ideal for those with a moderate to high-risk appetite looking for long-term wealth creation. The fund's diversified portfolio helps mitigate volatility, making it a reliable choice for both new and seasoned investors.
- Balanced exposure to equities and fixed income
- Ideal for moderate to high-risk investors
- Focus on long-term capital appreciation
- Diversified portfolio to reduce volatility
- Managed by experienced investment professionals
Investment Thesis
Franklin India Aggressive Hybrid Fund (IDCW) stands out due to its strong promoter credibility, robust digital services growth trajectory, and attractive valuation compared to peers. This fund offers a balanced approach to equity and debt, making it a compelling choice for retail investors seeking long-term growth.
- Strong backing from Franklin Templeton, a globally recognized asset management firm.
- Significant growth potential in digital financial services, catering to a tech-savvy investor base.
- Attractive valuation metrics compared to industry peers, enhancing investment appeal.
- Diversified portfolio strategy balancing risk and return effectively.
- Consistent historical performance, instilling confidence in long-term investors.
Opportunity vs Risk
- Strong long-term growth potential
- Diversified investment across assets
- Tax benefits under Section 80C
- Professional fund management
- Suitable for aggressive investors
- Market volatility affecting returns
- High expense ratio
- Interest rate fluctuations
- Economic downturn impacts
- Potential liquidity issues
Peer Perspective
Franklin India Aggressive Hybrid Fund currently trades at a slight premium compared to peers like HDFC Hybrid Equity Fund and ICICI Prudential Balanced Advantage Fund; a sustained improvement in margin stability could trigger a rerating.
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10BusinessHighThe fund is positioned in a future-ready sector with a diversified portfolio.
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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, indicating strong profitability.
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8ValuationHighValuation metrics are in line with peers, suggesting fair pricing.
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7BalanceHighDebt levels are manageable with adequate liquidity.
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6GovernanceGoodPromoter holding is stable, with no significant pledging.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.