Sunday, January 11, 2009

Investment Advise on Franklin Bluechip fund

One investor iMr.Khilji asked, "In March-2008, I filled up form to start 1K SIP in Franklin India Bluechip Fund (G), but due to some technical problem from HDFC Bank side, it was stopped. But, this month, they sorted out the problem and restarted my SIP in this fund. Please suggest, should I continue or stop SIP in this fund?"

Srikanth replied

" Dear Khilji, if u check its performance on past i year (which include a steep bull phase from july 07 to dec 07 & after that same bear phase from jan 08 to july 08) it is ranked 77 out of 172 funds in diversified fund category with -13.94% return over the period. For past 2 year performance it is ranked 74 out of 157 with not so impressive 14.49% return for the period.
The performance of Franklin Bluechip fund has been pathetic.

In fact, I have been bearish on this fund and stop recommending since nearly 2 years now. Not only this fund, but almost all the funds from the Franklin Stable have been laggards. Except for Templeton India Equity Fund, almost all their funds have been lagging behind their peers.
You are lucky that this technical problem happened from HDFC Bank side. You should thank your stars.
You can rather consider investing in other Large Cap Funds which have been giving consistently superior performance like DSPML Top 100 Fund, HDFC Top 200 Fund and invest in the same.
Best of luck,
Srikanth shankar Matrubai

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