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Are Franklin Templeton's equity schemes still good to invest? (iStockphoto)
Are Franklin Templeton's equity schemes still good to invest? (iStockphoto)

Should I continue my SIP in Franklin India Prima Fund?

  • I contribute 7,000 per month in the scheme
  • Franklin India Prima Fund is not performing well

Franklin Templeton Mutual Fund is in bad shape. I have investments in their equity scheme - Franklin India Prima Fund. Is that scheme safe? Should I exit or continue my SIP in Franklin’s equity scheme? The fund is not showing any decent performance. I contribute 7,000 per month in the scheme. Please advise what I should do?

-Ravi

By Prashant Maurya, Partner, Citrine Financial Advisors

First I would like to say that the problem faced by Franklin was limited to only six specific debt schemes. Franklin Equity funds in general and Franklin India Prima Fund specifically is not connected to the problem of some of their debt funds. Franklin India Prima Fund is dedicated mid cap fund. A mid cap scheme is more volatile than a large cap or a multi cap fund. It is difficult to advise on specific scheme unless there is complete disclosure of your portfolio. But as a general principle of equity investments 60 – 70 % can be in large and multicap , 20 – 30 % should be mid & small cap funds and remaining could be in thematic or sectoral funds.

Assuming that you only have one SIP investment In Franklin Prima Fund then you could stop it and start in Axis Bluechip Equity Fund , Mirae Asset Large Cap Fund, Canara Robeco Emerging Equities Fund, or any combination of these scheme. For more insight you should talk to your mutual fund advisor or distributor with you complete portfolio.

(Views as expressed by the expert.)

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