Franklin India Prima Fund has consistently outpaced its benchmark for the last eight years. It has proved extremely adaptable to market cycles, keeping up its outperformance despite twists and turns in market preferences. This has enabled it to hold onto a four and five-star rank for the last four years.

The Franklin India Prima Fund focuses on mid and small-cap businesses, with a leaning towards the former. It follows a growth at a reasonable price strategy. Some of the attributes it seeks in businesses are attractive return on capital, free cash flow, moderate capital intensity, as well as a durable and large growth opportunity. This needs to be supplemented by competent and disciplined management and a reasonably alert board of directors.

A look back at the track record suggests that the fund has navigated bull markets better than bear markets. But after slipping behind benchmarks in 2008, the fund managed to contain downside well in the fall of 2011. The three and five-year CAGRs are 7 to 11 percentage points ahead of the benchmark but neck and neck with the category. The fund has lagged behind in the last one year, probably due to its lower weights in large and small-caps relative to the category.

While it hasn't outpaced its peers on a year on year basis, it has been a big wealth creator over four market cycles, with a 21 per cent CAGR since launch. Mid-caps have always made up 65 to 70 per cent of assets. This is higher than the category allocation towards mid-caps.

The Franklin India Prima Fund is a seasoned veteran in the mid-cap category.