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Shanthi Venkataraman

FRESH investments can be considered in Templeton India Growth Fund (TIGF), as the fund has an impressive track record. Investments may, however, be made in a phased manner, in the wake of the current uncertainty prevailing in the stock market.

Suitability: Investors who wish to diversify their portfolios can take exposures in TIGF. The fund now has large holdings in PSU stocks, which could be susceptible to fluctuations in the near future on account of the political scenario. TIGF, which has displayed an ability to capture the market pulse, is also likely to exit some of the stocks that currently constitute its portfolio, if it believes that these stocks hold potential for a substantial downside.

Performance: The fund has significantly outperformed the Sensex, its benchmark index, on a one-year, three-year and five-year basis. This compares favourably to its peers such as Franklin India Bluechip and HDFC Equity, though, in the last three months, TIGF has under-performed its peers. However, on a long-term horizon, the fund remains a good investment option.

Portfolio overview: Banking stocks, which have been rallying in recent months, rank No.1 among its top three sector holdings.

Stocks of the oil sector and auto parts sector follow. The fund has in the last two years increased its exposures in IT and pharma stocks.

This lends more stability to the fund, which earlier used to be overweight in economically-sensitive stocks.

Fund facts: The fund was launched in September 1996. The minimum investment is Rs 5,000 for new investors and Rs 1,000 for additional investments made by existing investors.

The fund charges an entry load of 2.25 per cent but does not charge an exit load. The fund manager is Mr Mark Mobius.

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