The flagship scheme of Franklin Mutual Fund in the small-cap category, Franklin India Smaller Companies Fund has been slightly drifting below the peers in recent years. Although, despite facing volatile trends, the long term gains of the fund still remains foremost. The fund has a large investor-base and many have been in a dilemma to switch or stay for the last few years. However, the experts at MySIPonline are keeping an optimistic outlook for one of the most adventurous schemes in the Indian market.

“Small-cap mutual funds involve high risk and the performance of such schemes can be appalling, even for 3-4 years. The stocks chosen by the manager might require 7-10 years to prosper and expected gains are mostly witnessed in the long term. For the same reason, we only suggest small-cap funds to the investors who can stay invested for more than 7 years.” Quoted Mr Virendra Ranawat, CEO and Co-founder of the online investment start-up, MySIPonline.

For the last few years, the market has not been favouring the growth for the stocks of smaller companies. As a result, top-notch mutual funds in the small-cap category like Franklin India Smaller Companies Fund have been going through a bumpy lane for the last 3 years.

Experts suggest that this underperformance should not obscure the phenomenal gains that have been provided in the long term. The portfolio of the scheme is well diversified and is handled by veteran fund managers Mr Janakiraman and Mr Shyamsunder. Staying invested in the long term can be highly rewarding for potential investors.

The return of Modi Government after the Lok Sabha Elections 2019 gives another reason to stay invested for the next 5 years as many policies favouring the growth of small-cap segments have been witnessed in the past and more are expected in 2nd ruling tenure of BJP led government. The election results have boosted the gains as well as the sentiments of the investors and pundits.

Due to current market conditions and presuppositions, this can be the right time to make a purchase or start SIP as the NAV is downed by a decent margin but can attain new heights in the upcoming years.

Franklin India Smaller Companies Fund is an aggressive scheme and must be chosen by investors who can stomach the irregular fluctuations in the NAV. It has the ability to reward buyers with the highest gains in the long term. SIP can be a better choice for retail investors as it can lower the risk involved. To clear any query regarding the scheme and investments in mutual funds, investors are free to take the assistance of financial experts at MySIPonline.

Visit https://www.mysiponline.com/mutual-fund/franklin-india-smaller-companies-fund/mso462 For more details