Franklin India NSE Nifty 50 Index Fund(IDCW)

Ticker: mf16265
Decent 48/100

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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

Opportunities
  • Diversified exposure to Nifty 50
  • Potential for long-term capital growth
  • Low expense ratio compared to peers
  • Regular income through dividends
Risks ⚠️
  • 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.
📊 Stock Investment Checklist (100 Points)
Franklin India NSE Nifty 50 Index Fund(IDCW) • Updated: 2025-10-01 05:59:28
  • 10
    Business
    High
    The fund invests in a diversified portfolio of Nifty 50 stocks, which are in a future-ready sector.
  • 10
    Growth
    High
    Consistent revenue and profit growth from the underlying companies in the index.
  • 10
    Profitability
    High
    ROE and ROCE are strong, but OCF is slightly lower than net profit.
  • 8
    Valuation
    High
    Valuation metrics are in line with peers, but slightly on the higher side.
  • 7
    Balance
    High
    The fund has a strong balance sheet with low debt levels.
  • 5
    Governance
    Good
    Promoter holding is stable, but there are concerns about transparency.
  • 3
    Drivers
    Low
    Growth drivers are present, but execution risks exist due to market volatility.
  • 0
    Technicals
    Low
    Market sentiment is currently bearish with low liquidity.
Final Score & Verdict
Score 48 / 100 • Decent
The fund shows decent potential due to its diversified portfolio and consistent growth, but faces risks from market volatility and valuation concerns.