MASTERS OF COMMERCE

SEMESTER 4

Detailed Analysis of Performance Of The Mutual

Fund Schemes Of Franklin Templeton India Pvt.
Ltd.

SUB: COC 412 MANAGEMENT OF MUTUAL

FUNDS

ROLL NUMBERS: 20180314

CLASS: MCOM PART II

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 CHAPTER I: INTRODUCTION
1.1. UNDERSTANDING OF MUTUAL FUNDS
Mutual funds are investment vehicles that comprise of the capital of different investors who share a
mutual financial goal. A fund manager manages the pool of money that is collected from various
investors and invests the money into a variety of investment options such as company stocks, bonds
and shares. Mutual funds can be classified on the basis of asset class, structure, investment
objectives, risk profile, etc.
The first introduction of a mutual fund in India occurred in 1963, when the Government of India
launched Unit Trust of India (UTI) which later lost its monopoly power.
Mutual funds in India are regulated by the Securities and Exchange Board of India (SEBI), and
investing in mutual funds is considered to be the easiest way through which an investor can increase
their wealth.

1.2. FRANKLIN TEMPLETON INVESTMENTS

Franklin Resources Inc. is an American holding company that is referred to as Franklin Templeton
along with its subsidiaries. It is a global investment firm founded in New York City in 1947 as
Franklin Distributors Inc. and is listed on the New York Stock Exchange under the ticker symbol
BEN, in honour of Benjamin Franklin, for whom the company is named, and who was admired by
its founder Rupert Johnson, Sr.
In 1973 the company's headquarters moved from New York to San Mateo, California and as of
March 2017, Franklin Templeton Investments had US$740 billion in assets under management
(AUM) on behalf of private, professional and institutional investors.

1.3. HISTORY OF FRANKLIN TEMPLETON INVESTMENTS

The company was founded in 1947 in New York by Rupert H. Johnson Sr. who ran a successful
retail brokerage firm from an office on Wall Street. He named the company for American polymath,
Benjamin Franklin because Franklin espoused frugality and prudence when it came to saving and
investing. The company's first line of mutual funds, Franklin Custodian Funds, was a series of
conservatively managed equity and bond funds designed to appeal to most investors.
After Rupert Sr. retired, his son, Charles B. Johnson (Charlie), took over as president and chief
executive officer in 1957 at age 24 and the funds had total assets under management of US$2.5
million. Rupert Johnson Jr., Charlie's brother, joined the company in 1965.
Franklin went public in 1971 and in 1973, the company acquired Winfield & Company, a
California-based investment firm, and moved Franklin's offices from New York to California with a
close to US$250 million in AUM and approximately 60 employees.

Starting in 1980, the company's total AUM nearly doubled every year for the next six years and
trading on the New York Stock Exchange in 1986 commenced. In the same year, the company
opened its first office outside North America in Taiwan.

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In 1988, Franklin acquired L.F. Rothschild Fund Management Company. Assets under management
for Franklin grew from just over US$2 billion in 1982 to more than US$40 billion in 1989.
In October 1992, Franklin acquired Templeton-Galbraith & Hansberger Ltd. for a reported cost of
$913 million, leading to the common name Franklin Templeton. Mutual fund pioneer Sir John
Templeton was the owner of Templeton-Galbraith & Hansberger Ltd. together with his son Dr.
John Templeton and John Galbraith who together owned 70% of the firm.

1.4. FRANKLIN TEMPLETON INDIA

Franklin Templeton’s association with India dates back to over 2 decades as an investor. As part of
the group’s major thrust on investing in markets around the world, the Indian office was set up in
1996 as Templeton Asset Management India Pvt. Ltd. It flagged off the mutual funds business with
the launch of Templeton India Growth Fund in September 1996 and since then the business has
grown at a steady pace.
The firm specializes in conservatively managed mutual funds. It offers products under the Franklin,
Templeton, Mutual Series and Fiduciary brand names. Like other large investment companies, the
firm offers a wide variety of funds but is traditionally best known for bond funds under the Franklin
brand, international funds under the Templeton brand, and value funds under the Mutual Series
brand.

With the Franklin Templeton Asset Management India Pvt. Ltd. as the AMC, the company was set
up on February 19th 1996 and its sponsor was the global company i.e. Templeton International Inc.
The trustee of the company is Franklin Templeton Trustee Services Pvt. Ltd. and had average assets
under management of ₹118912 crore for quarter ended 31st March, 2019 with a rating of
[ICRA]A1+mfs by Investment Information and Credit Rating Agency (ICRA) Ltd.

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1.5. RESEARCH METHODOLOGY
Research can be defined as ‘an activity that involves finding out, in a more or less systematic way,
things you did not know.’ (Walliman and Walliman, 2011, p.7). ‘Methodology is the philosophical
framework within which the research is conducted or the foundation upon which the research is
based.’ (Brown, 2006).
Research Methodology of a research describes research methods, approaches and designs in detail
highlighting those used throughout the study, justifying the choice by describing advantages and
disadvantages of each approach and design taking into account their practical applicability to the
research.

1.5.1. OBJECTIVES OF THE STUDY

i. To identify and state the different types of mutual funds schemes floated by
Franklin Templeton India Pvt. Ltd.
ii. To analyse the financial performance of the mutual fund schemes of Franklin
Templeton India Pvt. Ltd. for a period of 5 years.

1.5.2. SOURCES OF DATA

The data collected for the study is purely based on secondary data and takes into consideration
data collected from the website of Franklin Templeton India Pvt. Ltd, research papers, websites
like moneycontrol.com, Wikipedia and other such informative search engines.
1.5.3. PERIOD OF STUDY
The study has been conducted for a period of 5 consecutive financial years namely financial
year 2015, financial year 2016, financial year 2017, financial year 2018 and financial year
2019.
1.5.4. TECHNIQUES OF ANALYSIS

The study deals with analysis of the performance of the mutual fund schemes floated in the
market by Franklin Templeton India Pvt. Ltd. The study is divided into two parts wherein:
i. PART A- deals with analysis of the performance of the mutual fund schemes of
Franklin Templeton India Pvt. Ltd. using Bar Charts.
ii. PART B- deals with analysis of the performance of the mutual fund schemes of
Franklin Templeton India Pvt. Ltd. using Sharpe’s Ratio.

1.5.5. LIMITATIONS OF THE STUDY

i. Only one company has been taken for the purpose of analysis of the performance of the
mutual fund schemes.
ii. The analysis of the performance of the mutual fund schemes are for only 5 consecutive
years.

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 CHAPTER 2: LITERATURE REVIEWS
1. A Literature Review on Investors' Perception towards Mutual Funds with Reference to
Performance, Risk-Return, and Awareness- Prafulla Kumar Swain & Manoranjan Dash
The world of finance has witnessed an exponential growth in the post information technology
revolution of the 1990s. The present study made an attempt to do a diagnostic analysis of past
literature, though a lot of research has been done on investors' perception on mutual funds. In
the present study, literature review on various dimensions with respect to the measurement of
performance, risk - return trade off of mutual funds, and investors' awareness, education, and
interest regarding mutual funds was examined to clear the gateway for the upcoming researchers
in the field of the mutual fund industry.

2. Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes- Dr. Sandeep
Bansal, Deepak Garg and Sanjeev K Saini(2012)
This paper examines the performance of selected mutual fund schemes, that the risk profile of
the aggregate mutual fund universe can be accurately compared by a simple market index that
offers comparative monthly liquidity, returns, systematic & unsystematic risk and complete
fund analysis by using the special reference of Sharpe ratio and Treynor’s ratio.

3. Comparative Performance Analysis of Select Indian Mutual Fund Schemes- Dr. K.

Veeraiah and Dr. A. Kishore Kumar (Jan 2014)
The research was conducted and dealt with the analysis the performance of Indian owned
mutual funds and compares their performance. The performance of these funds was analysed
using a five year NAVs and portfolio allocation. Findings of the study reveals that, mutual
funds out perform naïve investment. Mutual funds as a medium-to-long term investment option
are preferred as a suitable investment option by investors.

4. Emerging Scenario of Mutual Funds in India: An Analytical Study of Tax Funds- Dr.
Yogesh Kumar Mehta (Feb 2012)
The present study is based on selected equity funds of public sector and private sector mutual
fund. Corporate and Institutions who form only 1.16% of the total number of investors accounts
in the MFs industry, contribute a sizeable amount of Rs. 2,87,108.01 crore which is 56.55% of
the total net assets in the MF industry. It is also found that MFs did not prefer debt segment.

5. Comparative Study on the Debt Scheme of Mutual Fund of Reliance and Birla Sunlife- Dr
Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012).
This study provides an overview of the performance of debt scheme of mutual fund of
Reliance, and Birla Sunlife with the help of Sharpe Index after calculating Net Asset Values
and Standard Deviation. This study reveals that returns on Debt Schemes are close to
Benchmark return (CRISIL Composite Debt Fund Index: 4.34%) and Risk Free Return: 6%
(average adjusted for last five year).

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6. A Study on the Performance of select Private Sector Balanced Category Mutual Fund
Schemes in India - Prof. V. Vanaja and Dr. R. Karrupasamy (2013).
This study of performance evaluation would help the investors to choose the best schemes
available and will also help the AUM’s in better portfolio construction and can rectify the
problems of underperforming schemes. The objective of the study is to evaluate the
performance of select Private sector balanced schemes on the basis of returns and comparison
with their bench marks and also to appraise the performance of different category of funds
using risk adjusted measures as suggested by Sharpe, Treynor and Jensen.

7. Prediction of The Net Asset Values of Indian Mutual Funds Using Auto- Regressive
Integrated Moving Average (ARIMA) - E. Priyadarshini and Dr. A. Chandra Babu (2011).
In this paper, some of the mutual funds in India had been modelled using Box-Jenkins
autoregressive integrated moving average (ARIMA) methodology. Validity of the models was
tested using standard statistical techniques and the future NAV values of the mutual funds have
been forecasted.

8. Positioning of Mutual Funds among Small Town and Sub-Urban Investors - Dr. Ranjit
Singh, Dr. Anurag Singh and Dr. H. Ramananda Singh (August 2011).
In the recent past the significant proportion of the investment of the urban investor is being
attracted by the mutual funds. This has led to the saturation of the market in the urban areas. In
order to increase their investor base, the mutual fund companies are exploring the opportunities
in the small towns and sub-urban areas. But marketing the mutual funds in these areas requires
the positioning of the products in the minds of the investors in a different way. The product has
to be acceptable to the investors, it should be affordable to the investors, it should be made
available to them and at the same time the investors should be aware of it. The present paper
deals with all these issues. It measures the degree of influence on acceptability, affordability,
availability and awareness among the small town and sub-urban investors on their investment
decisions.

9. A Comparative Study on Performance Evaluation of Mutual Fund Schemes of Indian

Companies - Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2012).
In this paper the performance evaluation of Indian mutual funds is carried out through relative
performance index, risk-return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's
measure, and FAMA's measure. The data used is daily closing NAVs. The source of data is
website of Association of Mutual Funds in India (AMFI). The study period is 1st January 2007
to 31st December, 2011. The results of performance measures suggest that most of the mutual
fund have given positive return during 2007 to 2011.

10. Detailed analysis of Hybrid Mutual Funds - Dr. Ashok Khurana and Kavita
Panjwani (Nov, 2010).
Mutual fund returns can be compared using Arithmetic mean & Compounded Annual Growth
Rate. Risk can be analysed by finding out Standard Deviation, Beta while performance analysis
is based on Risk-Return adjustment. Key ratios like Sharpe ratio and Treynor ratio are used for

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 Risk-Return analysis. Funds are compared with a benchmark, industry average, and analysis of
volatility and return per unit to find out how well they are performing with respect to the
market Value at Risk analysis can be done to find out the maximum possible losses in a month
given the investor had made an investment in that month. Based on the quantitative study
conducted company a fund is chosen as the best fund in the Balance fund growth schemes.

CHAPTER 3: ANALYSIS OF THE MUTUAL FUND SCHEMES

PART A- Analysis of the Performance of the Mutual Fund Schemes of
Franklin Templeton India Pvt. Ltd. Using Bar Charts
Franklin Templeton India managed by Franklin Templeton Asset Management India Pvt. Ltd.
commenced its operations in India on 19th February, 1996 while being incorporated on 06th October,
1995. In the structure of the company:
 The sponsor or the promoter of the company is Templeton International Inc.
 The trustee is Franklin Templeton Trustee Services Pvt. Ltd.
 The AMC is Franklin Templeton Asset Management India Pvt. Ltd. and is responsible for
managing and floatation of the schemes in the mutual fund market.
 The custodians, who are responsible for the financial dealings of the mutual fund, are
Citibank and Deutsche Bank.
 The registrars are Franklin Templeton Asset Management India Pvt. Ltd. and Karvy
Computershare Pvt. Ltd.
 The auditors that is Price WaterHouse is responsible for auditing of the work done by the
AMC and S R Batliboi & Co. responsible for the verification and audit of the financial
reports and statements published of the mutual fund.
There are various schemes floated in the market by Franklin Templeton India and are further
categorised into different categories such as equity funds, hybrid funds, income and liquid funds,
etc.

A. EQUITY FUNDS
An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively
(index fund) managed. Equity funds are also known as stock funds and are principally categorized
according to company size, the investment style of the holdings in the portfolio and geography. The
objective of an equity fund is long-term growth through capital gains, although historically
dividends have also been an important source of total return. Specific equity funds may focus on a
certain sector of the market or may be geared toward a certain level of risk.
1. FRANKLIN INDIA BLUE CHIP FUND (FIBCF)
Franklin India Blue Chip Fund (FIBCF) is an open-end growth scheme with an objective primarily
to provide medium to long term capital appreciation and is managed by Anand Radhakrishnan and
Anand Vasudevan with a high level of risk associated with the fund. The fund has a rating of 2 stars
out of 5 by FundsIndia and was launched on 1st December, 1993.

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 2015 2016 2017 2018 2019
1.77% 6.15% 26.22% (-2.97%) 5.09%

30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2015 2016 2017 2018 2019
-5.00%

Returns for 5 years(%)

Over the period of 5 years it can be seen that the returns on the mutual fund scheme have rapidly
increased but due to an increase in the expense ratio due to higher payment of expenditures like
advertisement, commissions, etc. the returns have seen a fall in the year 2018 to a (-2.97%) which
led to a dissatisfaction among the investors.
Measures were taken to reduce the expense ratio which can be seen in the following year with a rise
in the returns to a rate of 5.09% in 2019.
2. FRANKLIN INDIA PRIMA FUND (FIPF)
Franklin India Prima Fund (FIPF) is an open-end growth scheme with an investment objective of
providing medium to long term capital appreciation as a primary objective and income as a
secondary objective. The fund is managed by R. Janakiraman & Roshi Jain and was launched on 1st
December, 1993 with a moderately of high level of risk of the fund.

2015 2016 2017 2018 2019

Over the period
6.5% 7.59% 39.15% (-8.87)% 3.39%
of 5 years it
can be seen that
the returns on the mutual fund scheme have drastically increased but due to an increase in the
expense ratio due to higher payment of expenditures like advertisement, commissions, etc. the
returns have seen a fall in the year 2018 to a (-8.87%). The fund manager was held responsible to
reduce the expense ratio which can be seen in the following year with a rise in the returns to a rate
of 3.39% in 2019.
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B. HYBRID FUNDS
Hybrid funds are mutual funds or exchange-traded funds (ETFs) that invest in more than one type of
investment security, such as stocks and bonds. This makes hybrid funds outstanding for a stand-alone
option, good funds for beginners or core holdings in a complete portfolio of mutual funds. It is an
investment fund that is characterized by diversification among two or more asset classes and may
also be known as asset allocation funds.
1. FRANKLIN INDIA MULTI – ASSET SOLUTION FUND (FIMAS)
Franklin India Multi – Asset Solution Fund (FIMAS) is an open-end fund of fund scheme which
seeks to provide an asset allocation solution to the investors. The asset allocation is dynamically
managed across Equity, Debt, Gold and Money Market based on proprietary model. The fund
proposes to primarily invest in Franklin Templeton's existing local equity, fixed income, liquid
products and in domestic Gold ETFs. The fund is managed by Anand Radhakrishnan (w.e.f. Feb 27,
2015) and deals with a moderately high level risk.

2015 2016 2017 2018 2019

0.79% 7.69% 11.09% 0.44% 7.98%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% Returns for 5 years(%) 2018

2015 2016 2017 2019

Over the period of 5 years it can be seen that the returns on the mutual fund scheme have increased
and decreased from one year to another year. The fluctuations in this mutual fund scheme from one
year to another is due to the uncertainty of the market which is unpredictable and one cannot
determine the trends of the returns.
In the year 2017 the rate of return was 0.79% which increased for the consecutive two years and
immediately following that, 2018 saw a fall in the rate to 0.44% and later increased to 7.98% in the
financial year 2019.
2. FRANKLIN INDIA PENSION PLAN (FIPEP)
Franklin India Pension Plan (FIPEP) is an Open-end Tax Saving Fund that seeks to provide
investors regular income under the Dividend Plan and capital appreciation under the Growth Plan. It

8
aims to invest in a portfolio of equity or equity related securities and fixed income securities with a
view to generate regular income together with capital appreciation.
The fund is managed by Anand Radhakrishnan, Sachin Padwal-Desai & Umesh Sharma and was
incorporated on 31st March, 1997.

2015 2016 2017 2018 2019

5.66% 8.02% 12.48% 1.29% 8.75%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% Returns2017
for 5 years(%) 2018
2015 2016 2019

Over the period of 5 years it can be seen that the returns on the mutual fund scheme have seen an
increase from the financial years 2015 to 2017 at an increasing rate by a difference of almost 3%
and more and then drastically decreased in the following year.
The uncertainty of the market caused such a fall in the returns. But subsequently in the following
year, it can be seen that the rate of return increased to 8.75% in 2019.

C. INCOME AND LIQUID FUNDS

Liquid funds are a type of debt funds that invest in financial instruments such as bank fixed
deposits, treasury bills, commercial papers, and other debt securities with maturities up to 90 days.
The NAV (Net Asset Value) of the liquid funds is calculated for 365 days, unlike other debt mutual
funds where NAV is computed for business days only. Liquid funds have no restrictions of a lock-
in period.

1. FRANKLIN INDIA ULTRA SHORT BOND FUND (FIUBF)

Franklin India Ultra Short Bond Fund (FIUBF) are an open end mutual funds scheme that was
incorporated on 18th December, 2007 and is managed by Pallab Roy & Sachin Padwal Desai. The
fund provides a combination of regular income and high liquidity by investing primarily in a mix of
short term debt and money market instruments.
They have a moderate level of risk and is best suited for those investors seeking regular income for
short term basis.

2015 2016 2017 2018 2019

9.7% 9.64% 8.1% 8.62% 9.53%

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 10.00%

9.50%

9.00%

8.50%

8.00%

7.50%

7.00% Returns2017
for 5 years(%) 2018
2015 2016 2019

Over the period of 5 years it can be seen that the returns on the mutual fund scheme have increased
and decreased from one year to another year at a very minor margin.
The fluctuations in this mutual fund scheme from one year to another is very marginal and the
investor is satisfied about the returns from the scheme due to the receipt of the returns in and around
the standard returns as per the market of the mutual fund scheme. From the year 2015 to 2016 an
increase of 0.06% is seen which is then followed by a fall of 1.54% and then a subsequent rise in
the next two financial years.

2. FRANKLIN INDIA LOW DURATION FUND (FILDF)

Franklin India Low Duration Fund (FILDF) are an open end income fund that was incorporated on
07th February, 2000 and is managed by Santosh Kamath & Kunal Agrawal. The objective of the
scheme is to earn regular income for investors in highly rated debt securities. They have a moderate
level of risk and is best suited for those investors seeking regular income for short term basis while
focusing on low duration securities.

2015 2016 2017 2018 2019

9.79% 9.62% 8.17% 8.35% 5.15%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% Returns2017
for 5 years(%) 2018
2015 2016 2019

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Over the period of 5 years it can be seen that the returns on the mutual fund scheme have decreased
from one year to another year at a continuously rate and this has mainly occurred on account of an
increase in the expense ratio and uncertainty of the market that occurred on account of increasing
interest rates.
The fall in this mutual fund scheme from one year to another is very marginal and has been drastic
in the financial year 2019 which led to the dissatisfaction to the investors at an increasing rate. From
the year 2015 to 2018 a minor decrease is seen in the returns followed by a massive decrease in the
financial year 2019.

PART B- Analysis of the Performance of the Mutual Fund Schemes of

Franklin Templeton India Pvt. Ltd. Using Sharpe’s Ratio
Sharpe ratio was named after Nobel laureate economist William Sharpe who developed it is a
measure of the risk-adjusted performance of a fund. It is measured with the help of the following
formula:
Average Fund Return – Risk Free Rate
Standard DeviationOf The Fund Returns

The ratio measures the excess returns that a fund can make over and above the risk-free rate. For the
risk-free measures, government bond yields are usually taken as the base, because unless
government falls, the returns are guaranteed. So, if one wants to calculate the returns of a three-year
fund, it will be compared with the yield of the government bond.

The Sharpe ratio tells investors whether an investment's returns are due to wise investment
decisions or the result of excess risk. This measurement is useful because while one portfolio or
security may generate higher returns than its peers, it is only a good investment if those higher
returns do not come with too much additional risk. The greater an investment's Sharpe ratio, the
better its risk-adjusted performance.

SN MUTUAL FUND SCHEMES SHARPE’S RATIO FOR LAST

O 3 YEARS

1 Franklin India Blue Chip Fund -0.09

2 Franklin India Prima Fund 0.04

3 Franklin India Multi – Asset Solution Fund -0.15

4 Franklin India Pension Plan 0.25

5 Franklin India Ultra Short Bond Fund -0.07

6 Franklin India Low Duration Fund -0.12

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 The Sharpe’s ratios of the different schemes of Franklin Templeton India Ltd. for the 3 financial
years up to 2019 are as follows:

Sharpe’s ratio takes into consideration and covers the following areas while evaluating the fund’s
performance:

 Optimum risk-adjusted returns

 Fund comparison
 Comparison against benchmark
 Analysis of fund’s strategy

The Sharpe’s ratio calculated for the above mutual fund schemes is fluctuating and each one is
interpreted differently:

1. FRANKLIN INDIA BLUE CHIP FUND:

It is an open-end growth scheme with an objective primarily to provide medium to long term capital
appreciation and with a high level of risk associated with it.

The Sharpe’s Ratio is (-0.09) as compared to its benchmark Sharpe’s ratio of 0.21. This indicates
that the fund is not able to enjoy the benefits of risk adjusted returns and is very poor in adjusting to
the high level of risk associated with the fund.
The fall in the Sharpe’s ratio as compared to its benchmark is massive and the fund manager is
solely responsible in improving his/her performance to improve the Sharpe’s ratio of Franklin India
Blue Chip Fund.

2. FRANKLIN INDIA PRIMA FUND:

It is an open-end growth scheme with an investment objective of providing medium to long term
capital appreciation as a primary objective and income as a secondary objective.

The Sharpe’s Ratio is 0.04 as compared to its benchmark Sharpe’s ratio of 0.12. This indicates that
the fund is not able to enjoy the benefits of risk adjusted returns and is very poor in adjusting to the
high level of risk associated with the fund.
Furthermore it indicates a poor return yielding capacity of Franklin India Prima Fund for every
additional unit of risk taken by it.

3. FRANKLIN INDIA MULTI – ASSET SOLUTION FUND:

Franklin India Multi – Asset Solution Fund (FIMAS) is an open-end fund of fund scheme which
seeks to provide an asset allocation solution to the investors. The asset allocation is dynamically
managed across Equity, Debt, Gold and Money Market based on proprietary model.
The Sharpe’s Ratio is (-0.15) as compared to its benchmark Sharpe’s ratio of 0.19. This indicates
that the fund is not able to reap the risk adjusted returns and is very poor in adjusting to the
moderately high level of risk associated with the fund.
The poor performance of the fund manager in handling the performance of the fund is highlighted
and it leads to a direct effect on the returns that an investor would receive after accounting for the
amount of risk.

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 4. FRANKLIN INDIA PENSION PLAN:
Franklin India Pension Plan (FIPEP) is an Open-end Tax Saving Fund that seeks to provide
investors regular income under the Dividend Plan and capital appreciation under the Growth Plan.
The Sharpe’s Ratio is 0.25 as compared to its benchmark Sharpe’s ratio of 0.07. This indicates that
the fund is in a better position to reap the benefits of risk adjusted returns and is highly capable in
adjusting to the level of risk associated with the fund. The fund manager has been effective and
efficient in his performance and has been able to deliver the returns of the fund. Moreover a higher
Sharpe ratio as compared to its standard Sharpe’s ratio indicates better return yielding capacity of a
fund for every additional unit of risk taken by it.

5. FRANKLIN INDIA ULTRA SHORT BOND FUND:

They are an open end mutual funds scheme that provides a combination of regular income and high
liquidity by investing primarily in a mix of short term debt and money market instruments.
The Sharpe’s Ratio is (-0.07) as compared to its benchmark Sharpe’s ratio of 0.07. This indicates
that the fund is not able to reap the risk adjusted returns and is poor in adjusting to the level of risk
associated with the fund. The consistency of the fund in delivering the returns every financial year
is not stable and even though the average returns are higher due to good performance in one year,
the same is not reflected in its consistency is adjusting to the risk associated to the returns.

6. FRANKLIN INDIA LOW DURATION FUND:

Franklin India Low Duration Fund (FILDF) are an open end income fund that was incorporated
with the objective of the scheme being to earn regular income for investors in highly rated debt
securities and a moderate level of risk associated with the fund.

The Sharpe’s Ratio is (-0.07) as compared to its benchmark Sharpe’s ratio of 0.07. This indicates
that the fund is not able to reap the benefits of risk adjusted returns and receives poor risk adjusted
returns in terms with every unit of risk associated with the fund. The negative ratio indicates that the
investor would be better off investing in a riskless asset, than the one that he/she has invested in
currently.

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https://www.icra.in › RationalePDFWeb resultsFranklin Templeton Asset Management (India)
Private Limited: Rating ... - ICRA

https://www.moneycontrol.com/mutual-funds/amc-details/TE

https://www.franklintempletonindia.com/investor/reports

https://www.fundsindia.com/s/Franklin-India-Bluechip-Fund-G-/931

https://www.fundsindia.com/s/Franklin-India-Prima-Fund-G-/948

https://www.fundsindia.com/s/Franklin-India-Multi-Asset-Solution-Fund-G-/31040

https://www.fundsindia.com/s/Franklin-India-Ultra-Short-Bond-Fund-Super-Inst-G-/4142

https://www.fundsindia.com/s/Franklin-India-Pension-Plan-G-/3396

https://www.fundsindia.com/s/franklin-india-low-duration-fund-g-/12420

https://www.moneycontrol.com/mutual-funds/nav/franklin-india-bluechip-
fund/riskanalysis/MKP001

https://www.moneycontrol.com/mutual-funds/nav/franklinindiaprimafundg/MKP002

https://www.moneycontrol.com/mutual-funds/nav/franklin-india-multi-asset-solution-fund/MTE400

https://www.moneycontrol.com/mutual-funds/nav/franklin-india-pension-plan/MKP011

https://www.moneycontrol.com/mutual-funds/nav/franklin-india-low-duration-fund/MTE280

https://www.moneycontrol.com/mutual-funds/nav/franklin-india-ultra-short-bond-fund-retail-
plan/MTE184

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