Franklin India Smaller Companies mutual fund has improved its risk-return profile; should you invest?

economictimes.indiatimes.com:

mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision. BASIC FACTS DATE OF LAUNCH 13 JANUARY 2006CATEGORY EQUITYTYPE SMALL CAPAUM* Rs.8,577 croreBENCHMARK NIFTY SMALLCAP 250 TOTAL RETURN INDEX WHAT IT COSTS NAV** GROWTH OPTION Rs.114.46IDCW** Rs.38.44MINIMUM INVESTMENT Rs.5,000MINIMUM SIP AMOUNT Rs.500EXPENSE RATIO* (%) 1.80EXIT LOAD 1% for redemption within 365 days*AS ON 31 MAY 2023 **AS ON 11 JULY 2023FUND MANAGER R. JANAKIRAMAN 15 YEARS, 4 MONTHSRecent portfolio changes New entrantsGHCL Textiles, Hitachi Energy India (April).

Apollo Pipes, Birlasoft (May). 360 One Wam, Cholamandalam Financial Holdings, Ujjivan Small Finance Bank (June).Complete exits Ceat (April). Hindustan Oil Exploration Company (June).Increasing allocation Apollo Pipes, Birlasoft, Blue Star, Exide Inds, Finolex Inds, Indiamart Intermesh, Intellect Design Arena, Ion Exchange, JK Lakshmi Cement, Kalyan Jewellers, KNR Constructions, Metropolis Healthcare, Zensar Technologies (June).Should you buy? This fund retains a modest presence in both mid and large caps, apart from its small-cap tilt.

It currently runs a highly diversified portfolio, with around 80 stocks featuring modest positions even in top bets. The fund manager is comfortable taking large deviations in sector positioning relative to its index. This fund hit a rough patch of underperformance between 2017 and 2021.

However, its fortunes have turned around, with the fund outperforming sharply since last year, faring particularly well in 2023. Its risk-return profile has improved considerably. A sustained turnaround will give the fund a platform to regain its past glory.(Source: Value Research)