Franklin India NSE Nifty 50 Index Fund(IDCW)
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Business Overview
The Franklin India NSE Nifty 50 Index Fund (IDCW) is a passive investment vehicle designed to replicate the performance of the Nifty 50 Index, which comprises the top 50 companies listed on the NSE. Ideal for investors seeking long-term capital appreciation with a diversified portfolio, this fund offers a straightforward entry into India's leading businesses. It matters because it provides exposure to the Indian economy's growth while maintaining lower costs compared to actively managed funds.
- Tracks the Nifty 50 Index for diversified exposure
- Ideal for long-term investors
- Low expense ratio enhances returns
- Suitable for both new and seasoned investors
- Offers a systematic investment approach
Investment Thesis
Franklin India NSE Nifty 50 Index Fund (IDCW) stands out due to its strong backing from a credible promoter group, promising growth in digital services, and attractive valuations compared to peers. This fund offers a solid opportunity for Indian retail investors seeking stable long-term returns.
- Strong promoter group with a proven track record in asset management.
- Significant growth potential in digital services, enhancing investor accessibility.
- Attractive valuation metrics compared to similar funds in the market.
- Diversified exposure to top Nifty 50 companies, reducing risk.
- Ideal for investors looking for a balanced and growth-oriented investment.
Opportunity vs Risk
- Diversified exposure to Nifty 50
- Potential for long-term capital growth
- Low expense ratio compared to peers
- Regular income through dividends
- Market volatility affects returns
- Limited to Nifty 50 performance
- Expense ratio may increase
- Economic downturn impacts investments
Peer Perspective
Franklin India NSE Nifty 50 Index Fund trades at a slight premium compared to peers like HDFC Nifty 50 Index Fund and ICICI Nifty Index Fund. A focus on consistent margin stability could drive a rerating.
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10BusinessHighThe fund invests in a diversified portfolio of Nifty 50 stocks, which are in a future-ready sector.
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10GrowthHighConsistent revenue and profit growth from the underlying companies in the index.
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10ProfitabilityHighROE and ROCE are strong, 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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7BalanceHighThe fund has a strong balance sheet with low debt levels.
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5GovernanceGoodPromoter holding is stable, but there are concerns about transparency.
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3DriversLowGrowth drivers are present, but execution risks exist due to market volatility.
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0TechnicalsLowMarket sentiment is currently bearish with low liquidity.