Franklin India Smaller Companies Fund Direct Growth

Franklin India Smaller Companies Fund Direct Growth is an equity fund. This fund was started on 1 January, 2013. The fund is managed by R. Janakiraman. The fund could potentially beat inflation in the long-run.

1. Franklin India Smaller Companies Fund Direct Growth has ₹13545 Cr worth of assets under management (AUM) as on Jun 2025 and is more than category average.
2. The fund has an expense ratio 0.9.
   

Franklin India Smaller Companies Fund Direct Growth has given a CAGR return of 21.63% since inception. Over the last 1, 3 and 5 years the fund has given a CAGR return of -2.61%, 29.78% and 35.26% respectively.

Franklin India Smaller Companies Fund Direct Growth has allocated its funds majorly in Cash Equivalent, Industrial, Financial Services, Consumer Cyclical, Health, Basic Materials, Tech, Real Estate, Consumer Defensive, Utilities, Government, Corporate, Energy. Its top holdings are Aster DM Healthcare Ltd Ordinary Shares, Brigade Enterprises Ltd, Karur Vysya Bank Ltd, Equitas Small Finance Bank Ltd Ordinary Shares, Eris Lifesciences Ltd Registered Shs

As it is a small-cap mutual fund the taxation is as follows:
For short term (less than a year) capital gains will be taxed at 20%
For long term (more than 1 year) capital gains will be taxed at 12.5% without indexation benefit
Dividends will always be taxed at slab rate. Long term gains upto Rs 1 lakh are exempt capital gains tax.

The Fund seeks to provide long-term capital appreciation by investing predominantly in small cap companies.

Minimum investment for lump sum payment is INR 5000.00 and for SIP is INR 500.00. Franklin India Smaller Companies Fund Direct Growth has no lock in period.