Franklin India Bluechip Fund

Established in 1993, Franklin India Bluechip Fund has demonstrated a steady growth in assets and reaped profit for its investors. While the main objective is long-term gains, the AMC does pay out profits under the fund which is usually every 2 years by way of dividend.

Dividend income is exempt from tax. However, a Dividend Distribution Tax is applicable under the law at 11.648% of the fund value.

There is no lock-in period under Franklin India Bluechip Fund but if you want substantial gains on your investment, you would be well advised to remain invested for a minimum period of 5 years.

The minimum initial investment is INR 5000. Thereafter you can invest in multiples of INR 1. You can redeem your investment either partially or fully at any time. If you choose to withdraw within a year of initial investment, you will be charged an exit load of 1% towards administrative cost.

You can invest in Franklin India Bluechip Fund through a Systematic Investment Plan (SIP) for a minimum amount of INR 500.

Franklin India Bluechip Fund Variants

Franklin India Bluechip Fund is an equity fund that invests in large-cap stocks. This makes it apt for people who are willing to invest in long term capital appreciation. This fund has two options that you can choose from – the growth option and the dividend option. Each of these is available under the Direct Plan and the Regular Plan.

Being an equity fund, there is an inherent risk. However, the portfolio is fairly well diversified and the fund has been performing well for those who have weathered the few dips since inception.

Despite being subject to market risks, there are several advantages of investing in Franklin India Bluechip Fund.

• This is a large cap fund focussed on investing in long standing companies with substantial profits.
• The fund managers attempt to ensure that investment is made only in companies with a record of accomplishment of more than 25 years.
• Historical results show that this fund has been a good performer and has been delivering consistent dividends.
• While large-cap funds usually display volatility over a shorter duration, investing for a longer period levels out that volatility.
• Due to its suitability for long-term capital appreciation, it is a good fund to consider when planning for major future events like your child’s educational needs or matrimonial requirements. You can also invest in this fund to build a retirement cushion for your future.

Historical NAV of Franklin India Bluechip fund

The Net Asset Value as of February 6, 2019, was as follows.

• Growth – 445.248
• Dividend – 36.245
• Direct-Growth – 468.634
• Direct-Dividend – 38.71

The turnover of the portfolio was 23.83 percent as of Dec 2018 while the fund size was 7809.08 Cr INR. To see the specific NAV under a particular variant for a particular date, please visit the fund website.

You can invest in Franklin India Bluechip Fund either directly with the fund manager for direct variant or through a third-party for regular variant. At the time of investment, you can either opt to receive dividend pay-outs as and when declared or reinvest any dividends back into the fund.

The procedure for investment is simple – submit the application form along with your KYC documents to the fund manager or third party. You can obtain the application form online from the website of the fund manager or through your broker or agent.

Documents required for investing in Franklin India Bluechip Fund

Irrespective of the variant you choose or the mode of application, you will be required to submit full KYC documentation with each new purchase. Under the SIP option, you will have to submit KYC only at inception. You can avail ECS facility for directly deposit the SIP amount into the fund from your bank account.

1) Can I apply for Franklin India Bluechip Fund if I am under 18?

According to law, individuals below the age of 18 cannot invest in mutual funds or equity funds. The only way for a person below the age of 18 to invest in such a fund is through a legal guardian.

2) When will I receive dividend on my investment?

This fund has been known for being consistent in providing investors with dividends at a regular time every two years.

3) How much dividend will I get?

The dividend that you will receive under Franklin India Bluechip Fund will depend on how well the fund performs in the market. It also depends on the amount you have invested. Returns on the corpus are divided among investors on a pro-rata basis.

4) What is the meaning of Growth fund?

A growth fund is one that does not provide the pay-out option. The dividends obtained from this fund are reinvested into the fund to increase the AUM and NAV of the fund.