Franklin Templeton India Feeder Fund
The US is home to many innovations and world-class companies across sectors. Franklin Templeton Mutual Fund brings forth the opportunity to buy into some of these globally competitive high-quality companies through Franklin Templeton India Feeder Fund - Franklin US Opportunities Fund.
This is an open-ended fund of funds scheme investing overseas that seeks to provide capital appreciation by investing predominantly in units of Franklin US Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the US.
The fund focuses on growth, quality and valuation, with strong emphasis on flexibility by combining bottom-up stock selection and top-down industry themes. Fund managers aims to identify and invest in high-quality companies with long-term revenue growth, superior profitability and sustainable and meaningful competitive advantages, that may benefit from favourable secular trends.
Franklin US Opportunities Fund has a track record of more than a decade and it has beaten the scheme benchmark over three and five year timeframe in both US dollar and rupee returns. At a time when the US equities are enjoying valuations below their historical averages and the US economy is expected to recover, investing in the US means buying growth at reasonable price.
US companies have global reach and 46.3% of total revenues of companies in S&P 500 index, though headquartered in the US, came from countries other than the US in CY2010. In other words, buying into such globally competitive companies can offer investors an opportunity to buy into global economic recovery too.
Investors get to benefit from global economic growth and at the same time get to diversify across globe. You need minimum Rs 5,000 to invest in this fund. There is an exit load of 2% if you decide to sell or switch within one year from date of allotment of units. Rusell 3000 Growth Index is the benchmark for this fund. The fund has growth and dividend plans, and you can choose between payout and reinvestment options under dividend plan.
The NFO (New Fund Offer) closes on January 31, 2012. The fund reopens for investment on February 14, 2012.
Why to Invest in this Fund
To buy into the largest equity market - USA - and invest into well-managed top quality companies that offer global diversification.
Negative Side of the fund
The fund may not deliver if the US and the global economy fail to recover as per expectations.
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(updated - 29 Jan 2012)
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