The Franklin Build India Fund is an open-ended equity mutual fund managed by Franklin Templeton Mutual Fund, focusing on infrastructure-related investments in India.
It aims to generate long-term capital appreciation by investing in companies engaged directly or indirectly in infrastructure activities such as transportation, energy, resources, and other related sectors.
Key Fund Details
- Fund Type: Equity – Sectoral/Thematic (Infrastructure)
- Launch Date: January 1, 2013 (Direct Plan)
- Benchmark: BSE India Infrastructure Total Return Index
- Risk Level: Very High
- Fund Managers: Sandeep Manam and Kiran Sebastian
- Assets Under Management (AUM): Approximately ₹2,642 crore as of March 31, 2025
- Net Asset Value (NAV): ₹151.84 as of April 30, 2025
- Expense Ratio: 0.96% (Direct Plan)
- Exit Load: 1% if redeemed within 1 year
Minimum Investment:
- Lump Sum: ₹5,000
- SIP: ₹500
Fund Managers of Franklin Build India Fund
The Franklin Build India Fund is managed by a team of three experienced fund managers: Ajay Argal, Sandeep Manam, and Kiran Sebastian.
- Ajay Argal: Serving as a fund manager since October 2021, Ajay brings over 16 years of experience in the investment industry. He has previously worked with Baring Asset Management (Asia) Ltd., Aditya Birla Sun Life Mutual Fund, and UTI AMC, handling various aspects of investment functions including managing offshore funds, equity funds, balanced funds, equity research, and equity dealing.
- Sandeep Manam: Also joining in October 2021, Sandeep holds a PGDM from IIM Ahmedabad and a B.Tech in Electronics & Communication Engineering from NIT Calicut. Prior to joining Franklin Templeton, he worked with Cognizant Technology Solutions and Shapoorji Pallonji & Company Private Limited.
- Kiran Sebastian: He became part of the fund management team in February 2022. Kiran holds an MBA from the University of Oxford and a B.Tech from the University of Calicut. Before joining Franklin Templeton, he worked with ARGA Investment Management (India) Pvt. Ltd.
These fund managers collectively oversee the investment decisions and strategies of the Franklin Build India Fund, aiming to generate long-term capital appreciation by investing in companies engaged in infrastructure-related activities.
Franklin Build India Fund Nav
As of April 30, 2025, the Net Asset Value (NAV) for the Franklin Build India Fund is as follows:
- Direct Growth Plan: ₹151.84 per unit
The NAV represents the per-unit market value of the fund’s holdings and is updated daily based on the performance of the underlying assets.
Franklin Build India Fund Portfolio
As of March 31, 2025, the Franklin Build India Fund maintains a diversified portfolio focused on infrastructure-related sectors.
Top 10 Equity Holdings
| Company | Sector | Portfolio Weight (%) |
|---|---|---|
| Larsen & Toubro Ltd. | Civil Construction | 8.79% |
| ICICI Bank Ltd. | Private Sector Bank | 6.13% |
| InterGlobe Aviation Ltd. | Airline | 5.81% |
| Reliance Industries Ltd. | Refineries & Marketing | 5.79% |
| NTPC Ltd. | Power Generation | 5.58% |
| Oil & Natural Gas Corporation Ltd. | Oil Exploration & Production | 4.66% |
| Bharti Airtel Ltd. | Telecom – Cellular & Fixed Line | 4.66% |
| Axis Bank Ltd. | Private Sector Bank | 4.17% |
| Power Grid Corporation of India Ltd. | Power Transmission | 3.70% |
| Tata Power Co. Ltd. | Integrated Power Utilities | 2.84% |
These top 10 holdings constitute approximately 52.13% of the fund’s total portfolio.
Sector Allocation
| Sector | Allocation (%) |
|---|---|
| Energy | 25.52% |
| Capital Goods | 14.71% |
| Construction | 14.15% |
| Financial | 11.98% |
| Services | 11.21% |
| Communication | 6.46% |
| Metals & Mining | 4.24% |
| Materials | 3.34% |
| Consumer Discretionary | 2.18% |
| Automobile | 0.87% |
Market Capitalization Breakdown
The fund’s equity investments are categorized by market capitalization as follows:
- Large Cap: 57.86%
- Mid Cap: 6.41%
- Small Cap: 18.6%
This allocation indicates a significant focus on large-cap companies, complemented by selective investments in mid and small-cap stocks to enhance growth potential.
Franklin Build India Fund Returns
As of the latest available data, the Franklin Build India Fund has demonstrated notable performance across various timeframes. Below is a detailed breakdown of its returns:
Franklin Build India Fund – Returns Overview
| Investment Period | Absolute Return (%) | Annualized Return (%) |
|---|---|---|
| 1 Month | 2.37% | — |
| 3 Months | -8.37% | — |
| 6 Months | -13.57% | — |
| 1 Year | 10.63% | 10.63% |
| 3 Years | 28.57% | 28.57% |
| 5 Years | 35.83% | 35.83% |
| 7 Years | 19.32% | 19.32% |
| 10 Years | 17.13% | 17.13% |
| Since Inception | 21.34% | 21.34% |
SIP Returns (₹1,000 Monthly Investment)
| Investment Period | Total Investment (₹) | Latest Value (₹) | Absolute Return (%) | Annualized Return (%) |
|---|---|---|---|---|
| 1 Year | 12,000 | 10,809.20 | -9.92% | -17.92% |
| 2 Years | 24,000 | 27,645.33 | 15.19% | 14.25% |
| 3 Years | 36,000 | 49,936.69 | 38.71% | 22.46% |
| 5 Years | 60,000 | 115,870.05 | 93.12% | 26.67% |
| 10 Years | 120,000 | 326,656.43 | 172.21% | 19.02% |
Key Highlights
- Fund Type: Equity – Sectoral (Infrastructure)
- Risk Level: Very High
- Expense Ratio: Approximately 2.02% for the Regular Plan
- Assets Under Management (AUM): ₹2,658.84 Crore (as of December 31, 2024)
- Benchmark: S&P BSE India Infrastructure Index
- Exit Load: 1% if redeemed within 1 year
Conclusion
The Franklin Build India Fund has showcased strong long-term performance, particularly over the 3, 5, and 10-year periods. Its focus on infrastructure-related sectors positions it well to capitalize on India’s growth in this domain.
However, given its sectoral nature, investors should be prepared for higher volatility and consider it suitable for long-term investment horizons.
Franklin Build India Fund Dividend
The Franklin Build India Fund offers an Income Distribution cum Capital Withdrawal (IDCW) option for investors seeking periodic payouts. Here’s an overview of its recent dividend history and related details:
Recent Dividend Payouts
| Record Date | Plan | Dividend per Unit (₹) | Ex-Dividend NAV (₹) |
|---|---|---|---|
| 20-Dec-2024 | Regular IDCW | 4.0000 | 47.1645 |
| 20-Dec-2024 | Direct IDCW | 4.8500 | 56.6626 |
These dividends were declared on December 20, 2024, with the NAVs adjusted accordingly on the ex-dividend date.
Key Considerations
- NAV Adjustment: Post dividend declaration, the fund’s NAV decreases by the dividend amount, reflecting the payout.
- Investment Horizon: Given the fund’s focus on infrastructure sectors, it is subject to higher volatility. Investors considering the IDCW option should have a long-term investment horizon to mitigate short-term market fluctuations.
- Growth vs. IDCW: While the IDCW option provides periodic payouts, the Growth option reinvests earnings, potentially leading to higher compounded returns over time.
Franklin Build India Fund – Direct Growth
The Franklin Build India Fund – Direct Growth is a sectoral equity mutual fund that focuses on infrastructure-related companies in India. Launched on January 1, 2013, it aims to generate long-term capital appreciation by investing in businesses engaged in infrastructure development and related activities.
Performance Overview
| Period | Absolute Returns (%) | Annualized Returns (%) |
|---|---|---|
| 1 Year | 3.07% | 3.07% |
| 3 Years | 116.68% | 29.37% |
| 5 Years | 367.89% | 36.13% |
| 10 Years | 416.90% | 17.84% |
| Since Inception | 1020.33% | 21.65% |
SIP Performance
| SIP Duration | Total Investment (₹) | Latest Value (₹) | Absolute Return (%) | Annualized Return (%) |
|---|---|---|---|---|
| 1 Year | ₹12,000 | ₹11,754.78 | -2.04% | -3.77% |
| 2 Years | ₹24,000 | ₹29,095.78 | 21.23% | 19.70% |
| 3 Years | ₹36,000 | ₹53,580.34 | 48.83% | 27.59% |
| 5 Years | ₹60,000 | ₹125,968.60 | 109.95% | 30.18% |
| 10 Years | ₹1,20,000 | ₹3,74,617.12 | 212.18% | 21.55% |
Key Considerations
- Investment Objective: The fund aims to generate capital appreciation by investing in companies engaged in infrastructure-related activities, including development, operations, management, and maintenance of various infrastructures such as transportation, energy, resources, and other infrastructure.
- Risk Profile: Being a sectoral fund focusing on infrastructure, it carries a Very High risk level. Investors should be prepared for higher volatility and consider a long-term investment horizon.
- Expense Ratio: At 0.96%, the fund’s expense ratio is competitive within its category, reflecting efficient fund management.
- Exit Load: An exit load of 1% is applicable if units are redeemed within 1 year from the date of allotment.
Franklin build India Fund Regular Growth
The Franklin Build India Fund – Regular Growth is a sectoral equity mutual fund that focuses on infrastructure-related companies in India.
Performance Overview
| Period | Absolute Returns (%) | Annualized Returns (%) |
|---|---|---|
| 1 Year | 5.69% | 5.65% |
| 2 Years | 72.81% | 31.41% |
| 3 Years | 96.27% | 25.18% |
| 5 Years | 301.88% | 32.05% |
| 10 Years | 312.52% | 15.21% |
| Since Inception | 1116.14% | 17.44% |
Strengths of Franklin Build India Fund
1) Focused Infrastructure Exposure
- Invests in infrastructure-related sectors like energy, capital goods, construction, and transportation.
- Potential for high growth during economic expansion and government infrastructure push.
2) Experienced Fund Management
- Managed by professionals: Ajay Argal, Sandeep Manam, and Kiran Sebastian.
- Backed by Franklin Templeton’s global research capabilities and risk management systems.
3) Strong Long-Term Performance
- Impressive long-term returns (over 17% CAGR since inception).
- High compounding potential in the Growth option, especially for long-term SIP investors.
4) Sector Rotation & Diversification within Infra
- While it’s a thematic fund, it diversifies across sub-sectors (energy, industrials, banks, etc.), mitigating concentration risks to some extent.
5) Benefit from India’s Infra Push
- Likely to benefit from government initiatives like the National Infrastructure Pipeline (NIP), Gati Shakti, and increased capital expenditure.
Risks of Franklin Build India Fund
1) Sectoral Concentration Risk
- Being a thematic fund, it is highly exposed to a single theme—infrastructure.
- Underperformance is likely during downcycles in infrastructure or economic slowdowns.
2) High Volatility
- Stocks in infrastructure (construction, utilities, capital goods) are cyclical and sensitive to interest rates, making NAVs volatile.
3) Higher Expense Ratio (Regular Plan)
- The regular plan has a relatively higher expense ratio (~2.03%), which could reduce net returns for some investors.
4) Liquidity Risk
- Certain infra-related stocks may have lower liquidity or face regulatory delays, affecting the fund’s flexibility in times of market stress.
5) Macroeconomic Sensitivity
- Infrastructure sectors are sensitive to inflation, policy changes, government spending, and global commodity prices, increasing systemic risk.
Conclusion
- Investors with a high risk appetite.
- Those looking for long-term exposure (5–7 years+) to India’s infrastructure story.
- People who understand the cyclical nature of the sector and are okay with interim volatility.
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