Flexicap funds are one of the most sought-after funds as they offer a holistic approach towards investment. It encompasses all the market capitalization categories and allocates the funds according to market conditions. So, in this article, we will be talking about one such flexicap fund, which is Franklin India Flexicap Fund Direct-Growth. This article will revolve around different aspects of the funds that you an investor, should know. 

Franklin India Flexicap Fund Direct-Growth Fund Management and Objectives

Franklin India Flexicap Fund Direct-Growth invests in the equity and equity-related instruments of companies across the market capitalization category. The objective of this fund is to generate wealth over time. 

Franklin India Flexicap Fund Direct Plan-Growth is managed by – 

• Rejasa Kakulavarapu: She has been managing the fund since December 2023. Before joining Franklin Templeton Mutual Fund, she was associated with Jefferies India and also worked at the Credit Suisse Securities (India) Pvt. Ltd. She holds a Bachelor’s in Technology and an MBA. 
• R Janakiraman: He has been associated with this fund since January 2023, and he holds a Bachelor’s in Engineering and a PGDM in Business Management. He was earlier working with Indian Syntans Investment Pvt. Ltd., UTI Securities Exchange Ltd., and Citicorp Information Tech Ltd. 

Excited about investing in the Franklin India Flexicap Fund? Open a free Demat account today!

How Does the Franklin India Flexicap Fund Work?

Franklin India Flexicap Fund Direct works according to the market. This means, when the market is volatile and prices are going down, the asset under management (AUM) of this fund can be shifted towards the large-cap stocks, as they offer stability in return and are thus less risky. Again, when the market starts gaining, a bull run comes back in the market, and the AUM can shift mostly towards the mid and small-cap stocks as these stocks offer more returns during a market uptrend. This way, the returns can be optimized while the risk can be reduced to some extent, and that is what makes flexicap funds special.  

Performance and Returns (As of 16 June 2025) 

Franklin India Flexicap Fund Direct-Growth has been offering consistent returns over and over again. Here is a snapshot of the returns –  

Time Frame	Franklin India Flexicap Fund Direct-Growth (%)	Category Average
YTD	2.20	1.38
3 Month	14.12	14.79
6 Month	-1.10	-2.54
1 Year	8.51	5.40
3 Year	25.86	22.69
5 Year	28.21	23.73
7 Year	16.77	15.13
10 Year	15.40	14.67

From the above performance, it can be understood that the fund has outperformed its peers in most scenarios/timeframes. 

Investment Allocation (As of 31 May 2025)

The Franklin India Flexicap Fund Growth has 92.87% equity and equity-related instruments, and 6.87% is cash and cash equivalents. 

Market cap-wise asset allocation 

• Giant Cap – 66.93% 
• Large Cap – 18.55%
• Mid-cap – 11.69%
• Small-cap – 2.84%

As of 31 May 2025, the fund had an average market cap of ₹269684 crore, and it spans

across 51 stocks. The top 10 holdings make up 45.22% of its assets. 

Sectoral Allocation 

The fund invests across sectors, offering a well-diversified portfolio. Here are the top five sectors as of 31 May 2025 – 

Sectors	Allocation (%)
Financial Services	28.95
Technology	16.11
Consumer Discretionary	10.81
Industrials	9.36
Energy & Utilities	8.35

Stock-wise Allocation 

The top five stocks of the Franklin India Flexicap Fund include – 

Stocks	Assets (%)
HDFC Bank	8.78
ICICI Bank	8.44
Bharti Airtel	4.26
Larsen & Turbo	4.19
Infosys	3.87

Key Metrics 

As of 31 May 2025, the fund had an expense ratio of 0.90%, and the Franklin India Flexicap Fund NAV as of 16 June 2025 stood at ₹1826.2606.

Fund Details	Information
AUM (Assets Under Management)	₹18679 Crore as of 31 May 2025
Category	Equity Fund, open-ended
Fund Manager	Rajasa KakulavarapuR Janakiraman
Exit Load	1% if redeemed within 365 days
Entry Load	Nil
Minimum Investment	₹5000 (Lump sum)₹500 (SIP)
Benchmark	Nifty 500 TRI

Risk and Performance of the Franklin India Flexicap Fund 

This fund is classified as a ‘Very High Risk’ fund. It usually offers a higher return but also possesses higher risk. 

1. Standard Deviation (Std Dev%): It shows how much the returns vary from the average returns generated by the funds themselves. The higher this number, the more it fluctuates.

The Standard deviation for the fund is 13.60%, while that of the category is 14.14%, making the fund a little bit less volatile than its peers.

2. Beta: This ratio indicates the volatility of the fund’s performance, compared to similar funds in the market. The lower the Beta, the more predictable the returns are, and vice versa. It helps in comparing funds. 

The fund has 0.92% as beta, while that of the category is 0.92% as well, which indicates that the fund has almost equal volatility level as the market.  

3. Sharpe Ratio: This ratio indicates the return you get for the risk you’re taking. A higher number means better risk-adjusted returns.

The fund has 1.09% while the category average is 0.89%. It indicates higher risk-adjusted returns.

4. Sortino Ratio: It is similar to Sharpe but only looks at downside risk (the risk of losing money).

The fund has 1.60% while the category average is 0.89%, indicating higher downside risk-adjusted returns. 

5. Alpha: It measures the extra return the fund gives above the market’s average return.

The fund has an Alpha of 4.25%, and the category average is only 1.77%, indicating the fund’s ability to offer way higher returns than its peers/ category. 

Top Peer Analysis 

Fund Name	3-Year Return (%)	5-Year Return (%)
Franklin India Flexicap Fund	25.86	28.21
Parag Parikh Flexicap Fund	26.19	27.44
HDFC Flexicap Fund	29.03	31.60
JM Flexicap Fund	30.61	29.03

Taxation for Franklin India Flexicap Fund 

If you’re investing in the Franklin India Flexicap Fund, here’s how your returns will be taxed:

1. Short-Term Gains – If you sell the fund units within 1 year of the date of investment, a 20% tax will be levied on the entire return generated during the period. 
2. Long-Term Gains – If you sell the fund units after one year, any profit generated over and above ₹1.25 lakh will be taxable at a 12.5% rate. The same rate will be applicable for any investment tenure above 1 year. 

So, the longer you hold your investments, the better returns you can expect and the less the effect of taxes!

3. Taxes on Dividends – Dividends earned, if any, will be taxable in the hands of investors as per their tax slabs. If the dividend income surpasses ₹10000 in a financial year, then the fund house will deduct 10% TDS before disbursing the dividend into the account of the investor. 

Minimum Investment and Lock-in Period

The minimum investment amount in the Franklin India Flexicap Fund is ₹5000 for lump sum and SIP, which is ₹500. There is no lock-in period for the Franklin India Flexicap Fund Direct-Growth.

How to Invest in Franklin India Flexicap Fund Direct?

You can invest in the Franklin India Flexicap Fund – Direct Growth plan with Shoonya. 

Shoonya offers a free Demat account,  Zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

Investing in Lump Sum Mutual Funds through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at https://trade.shoonya.com . From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, the Franklin India Flexicap Fund – Direct Growth plan.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. You will receive a payment link on your registered email. Use the link to make the payment.

After payment, your mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for Franklin India Flexicap Fund Direct Plan-Growth plan, you must follow these steps:

1. First, you need to log in to your Shoonya account at https://trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, the Franklin India Flexicap Fund – Direct Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must enter the mandate amount and the validity date (until you want to keep your SIP active).

4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).

If you do not want to forget your SIPs and invest systematically, the SIP method can be most suitable for you. 

Why Invest in the Franklin India Flexicap Fund?

The reasons for investing in the Franklin India Flexicap Fund Direct-Growth can be – 

• Long-term capital accumulation – wealth building
• Well-diversified portfolio across sectors

Suitability of this Fund| Who Should Invest?

The Franklin India Flexicap Fund Direct is suitable for investors who:

• Are Risk takers
• Looking for long-term capital appreciation 
• Can stay invested for at least five years 

Conclusion

Franklin India Flexicap Fund can be a good addition to the portfolio if someone is looking to diversify their portfolio and has an appetite for risk in order to generate a higher return. The fund has been offering market-beating returns; however, one needs to consider all other factors as well before investing in the fund.  

Franklin India Flexicap Fund Direct – Growth|FAQs

Source: ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.