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The Franklin India Growth Fund Portfolio (FIGZX)

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Introduction

The Franklin India Growth Fund (FIGZX) invests with the aim of long-term capital appreciation and across market caps, in equities of companies based in India. As of December 31, 2015, the fund’s total net assets under management were $122 million. As of November 30, 2015, the fund had a diversified portfolio with investments in nine out of ten sectors. It did not have any investments in the

As of November 30, 2015, the fund had a diversified portfolio with investments in nine out of ten sectors. It did not have any investments in the utilities sector. The chart below shows the sectoral breakdown of FIGZX portfolio as of November 30, 2015.

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Top holdings of FIGZX

As of November 30, 2015, the top ten holdings of FIGZX formed 40.6% of the portfolio. The total number of holdings of the FIGZX was 50. Financials formed 30% of the portfolio. The top ten holdings of the fund are skewed toward financial stocks. Five out the top ten stocks are banking sector (IBN) stocks.

Financials form 19.9% of the fund’s top ten holdings. Among non-financial stocks, Infosys (INFY) is a major holding, forming 5.1% of the portfolio. HDFC Bank (HDB) is the top holding. HDB forms 5.5% of the portfolio. Tata Motors (TTM) is also among the top ten holdings, forming 4.6%.

Among non-financial stocks, Infosys (INFY) is a major holding, forming 5.1% of the portfolio. HDFC Bank (HDB) is the top holding. HDB forms 5.5% of the portfolio. Tata Motors (TTM) is also among the top ten holdings, forming 4.6%.

The chart above shows the comparison of sector-wise portfolio comparison of FIGZX with that of the benchmark index. MSCI IMI India is the benchmark index.

Portfolio compared to the benchmark

The composition of the fund and the benchmark are markedly different. While the fund’s portfolio has 30% in financials, the benchmark has only 16.8% in financials. Similarly, in the information technology sector, the fund has about twice that of the benchmark.

Although the fund’s portfolio has 13.5% in information technology, the benchmark index has only 5.6%. The sectoral composition of other sectors also vary from that of the benchmark.

In the next article, we will analyze the performance of FIGZX.

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