MUTUAL FUND SCHEME ANALYSIS JUNE 2016

RETAIL RESEARCH
Franklin India Prima Plus Fund

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Key points: Unit Growth of investments Vs. Benchmark (Rebased to 100)

Franklin India Prima Plus is one of the consistently performing schemes from Diversified Equity Large-
cap category. The scheme has managed to deliver better returns over periods thanks to the fund
managers efficiency.

The scheme has registered +6%, +23% and +15% of compounded returns respectively for one, three and
five year periods while the benchmark Nifty 500 posted +3%, +14% and +9% of returns respectively. For
the same period, the category registered the growth of +4%, +17% and +11% of CAGR returns
respectively.

Franklin India Prima Plus does not follow pure large-cap orientation at any time allocating relatively a
notable portion to mid and small cap stocks. This has helped the scheme to generate higher returns in
the market rally over the peer schemes in the large-cap category. However, the performance of the
scheme during market corrections has also been good.

The fund managers of the scheme follow bottom-up approach while picking stocks that are having Equity Assets Break-up:
businesses with a strong return on capital and visible competitive advantages. The fund mainly focuses
on the companys future ability to generate wealth in a competitive business environment. The fund
avoids cash calls, believing that its mandate is to find equity opportunities in every kind of market.

The portfolio has been churned moderately in last six months period in as much as it added 7 new stocks
and exited from 6. The turnover ratio of the scheme was at 5%. HDFC Bank, INFY and ICICI Bank are the
stocks topped in its latest portfolio having weights of 7.66%, 4.36% and 4.12% to its net assets
respectively.

The expense ratio of 2.29% for the scheme is lower compared to the category average of 2.63%. Rating
agencies like Value research & Crisil assigned 5 star and CPR 2 respectively for the scheme. These
reflect the very good performance of the scheme in generating high-risk adjusted returns.

The scheme is managed by Mr. Anand Radhakrishnan and Mr. Janakiraman. The corpus of the scheme as
per latest data was at Rs. 7,425 crore.

The scheme seems to be less risky in the category as it generated 14.57% (category 16.45%) of
Annualised Standard Deviation (calculated from monthly rolling returns) over the last three-year period.

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Analyst: DhuraivelGunasekaran (dhuraivel.gunasekaran@hdfcsec.com) Source: NAVIndia.com & ACEMF

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office

HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East), Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email:
hdfcsecretailresearch@hdfcsec.com.

Disclaimer: Mutual Funds investments are subject to risk. Past performance is no guarantee for future performance.This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or
copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as
such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended for non-Institutional
Clients.

This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
(Institutional, PCG) of HDFC Securities Ltd. HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475.

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