Franklin India NSE Nifty 50 Index Fund
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Business Overview
The Franklin India NSE Nifty 50 Index Fund is a mutual fund designed for investors seeking to gain exposure to the top 50 companies listed on the National Stock Exchange of India. Ideal for both novice and seasoned investors, this fund offers a simple way to invest in India's economic growth. By tracking the Nifty 50 index, it provides diversification and reduces individual stock risk, making it a smart choice for long-term wealth creation.
- Tracks top 50 NSE companies
- Ideal for long-term investors
- Offers diversification
- Reduces individual stock risk
- Suits both beginners and experts
Investment Thesis
The Franklin India NSE Nifty 50 Index Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This combination positions it as a compelling investment option for retail investors seeking long-term capital appreciation.
- Backed by Franklin Templeton, a trusted name in asset management.
- Significant growth in digital services enhances accessibility and investor engagement.
- Valuation metrics are favorable compared to industry peers, offering potential upside.
- Diversified exposure to top Nifty 50 companies mitigates risk.
- Ideal for investors seeking a passive investment strategy with growth potential.
Opportunity vs Risk
- Diversified exposure to Nifty 50
- Potential for long-term capital growth
- Low expense ratio compared to peers
- Regular SIP investment options available
- Market volatility affecting returns
- Economic downturn impacts index performance
- Limited flexibility in fund management
- Higher expense during market corrections
Peer Perspective
Franklin India NSE Nifty 50 Index Fund trades at a slight premium compared to peers like HDFC Index Fund and ICICI Prudential Nifty Index Fund. A rerating could occur with improved margin stability and consistent growth.
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10BusinessHighThe fund is invested in a diversified portfolio of large-cap companies, which are generally in future-ready sectors.
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10GrowthHighThe fund has shown consistent growth in line with the Nifty 50 index, reflecting stable revenue and profit growth.
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10ProfitabilityHighThe fund's underlying assets exhibit strong ROE and ROCE, with healthy cash flows.
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8ValuationHighValuation metrics like P/E and P/B are in line with industry averages, indicating fair pricing.
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7BalanceHighThe fund maintains a strong balance sheet with low debt levels and adequate liquidity.
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6GovernanceGoodPromoter holding is stable with no significant pledging, and disclosures are transparent.
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5DriversGoodThe fund benefits from market catalysts but faces execution risks in volatile markets.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity and stable price action.