Franklin Templeton Investments was set up in the year 1947 and has been providing excellent asset management to clients all over the world. The company serves around 180 countries and has 13 global trading offices, 15 local asset management teams, and 46 research offices. Franklin Templeton India was set up in the year 1996 and the mutual fund business was started in the month of September the same year. The business has been witnessing a steady growth ever since.
The company offers equity funds, hybrid funds, fixed income funds, international funds, liquid funds, and ELSS schemes. Franklin India Bluechip Fund is one among the 12 equity fund schemes offered by the company. The scheme offers both, the growth and the dividend variants. The dividend plan type provides regular payouts to the investors. The scheme is ideal for individuals who want capital appreciation as well as dividend payouts. The plan also has a reinvestment option wherein the investor can reinvest the dividend declared instead of accepting it in the form of cash. Hence the dividend option provides a dual benefit of capital growth as well as income.
Investment Objective of Franklin India Bluechip Fund - Dividend
The objective of the scheme is to achieve capital appreciation on a long-term basis by making investments in equity and equity-related instruments. The investments will be made in many companies but the focus will be on large cap companies.
Key Features of Franklin India Bluechip Fund - Dividend
The table below indicates a few of the main features of the Franklin India Bluechip Fund – Dividend:
|Type of fund||Open-ended equity scheme|
|Options under each plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment Amount for Franklin India Bluechip Fund - Dividend
The AMC has set limitations on certain investment amount details:
|Minimum application amount||Rs.5,000|
|Minimum additional investment||Rs.1,000|
|Minimum installment for Systematic Investment Plan (SIP)||Rs.500|
|Exit Load||If the units are redeemed or switched-out within 1 year from the date of allotment, 1% of the units are charged|
The value of the investor’s account is required to be minimum Rs.1,000. If the value goes below Rs.1,000, the mutual fund will send a written notice to the individual. If he/she does not purchase sufficient units to increase the value of the account, the account will be closed by the AMC.
Asset Allocation for Franklin India Bluechip Fund - Dividend
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Debt and money market securities||0% – 20%||Low to medium|
|Equity and equity-related securities of large-cap companies||80% - 100%||Medium to high|
|Equity and equity-related securities of companies other than large- cap companies||0% - 20%||Medium to high|
Who can invest in Franklin India Bluechip Fund - Dividend
Persons and certain bodies mentioned below are eligible to purchase units under the scheme:
- Indian resident adults – single and joint (Not more than 3 adults in the case of joint holding)
- Parents/Legal guardians on behalf of minors
- Hindu Undivided Family (HUF)
- Corporate bodies, companies and Public Sector Undertakings (PSUs)
- Partnership firms, sole proprietorship, and limited liability partnerships
- Financial institutions and investment institutions
- Overseas Citizen of India (OCI) and Non-resident Indians (NRIs)
- Foreign portfolio investors and foreign institutional investors
- Associations of people, co-operative societies, trusts, clubs, societies, and wakf boards
- Scientific research organisations and industrial research organisations
- Alternative investment funds and mutual fund schemes
- Other bodies, institutions or associations permitted to invest in mutual funds
- Other individuals, associations, or bodies as decided by the AMC as per the SEBI regulations
NAV Disclosure and Benchmark for Franklin India Bluechip Fund - Dividend
NAV: The NAV or Net Asset Value is calculated by deducting the liabilities (except reserves and capital) from the sum of the market value of the investments and the other assets, including accumulated interest. The resulting figure is then divided by the number of units of the scheme that particular day. The final figure is the NAV. The NAV is computed on every business day and is disclosed on the official website of the company.
Liquidity: The units under the scheme can be repurchased or redeemed on any business day. After receiving the redemption request, the redemption proceeds will be sent out to the unitholders at the Official Points of Acceptance of Transactions (OPAT) of the fund.
Benchmark index: The benchmark index of the Franklin India Bluechip Fund - Dividend is Nifty 100.
Fund Managers of Franklin India Bluechip Fund - Dividend
The Fund Managers of the scheme are Anand Radhakrishnan, Roshi Jain, and Srikesh Nair.
Anand Radhakrishnan, who has an experience of 24 years, has been managing the scheme for 11.25 years as on 27 June 2018. He is the Chief Investment Officer of Franklin Equity (India).
Roshi Jain has a total of 19 years of experience and has been managing the Franklin India Bluechip Fund - Dividend scheme for 2.15 years as on 27 June 2018. She is the Vice-President and Portfolio Manager of Franklin Equity.
Srikesh Nair, with 7 years of experience, has been managing this scheme for 2.58 years. He is currently working as the Senior Manager & Research Associate at Franklin Equity.
Investment Restrictions of Franklin India Bluechip Fund - Dividend
The AMC has mentioned certain restrictions with regard to the scheme as given below:
- Only securities that can be transferred will be invested in under the scheme.
- The purchasing and selling of securities are done on the basis of deliveries. In case of purchase, the relevant securities will be received and in case of sale, the relevant securities will be delivered.
- For long-term investments, the mutual fund will buy or transfer the securities in the name of the fund for the concerned scheme.
- Investments cannot be made in fund of funds schemes.
- Loans cannot be taken from the fund corpus.
- The scheme can make investments in other schemes as long as the aggregate inter-scheme value of assets does not cross 5% of the NAV and the investment objective is similar to the previous scheme.
- The mutual fund cannot hold more than 10% of a company’s voting rights.
- Investments in equity and equity-related securities are limited to 10% of the net assets.
- Investments in unlisted equity and equity-related securities are limited to 5% of the net assets.
- Investments in debt instruments, like money market and non-market securities offered by a single issuer, are limited to 10% of the NAV. The limit may be extended by 2% with the approval of the boards - Board of trustees and the board of the mutual fund. The restriction, however, is not applicable on treasury bills, government securities, collateralised borrowing, and lending obligations. Debentures also have the same restrictions as debt instruments.
- Investments in unrated debt instruments offered by a single issuer are limited to 10% of the NAV and the total investment is limited to 25%.
- The limit for the exposure in certain sectors is 25% of the net assets. This restriction is not applicable to investments in short-term deposits in banks, AAA-rated securities issued by private or public sector banks. The financial services sector is given an additional 15% exposure on the net assets of the scheme by increasing the exposure to Housing Finance Companies.
- The exposure for schemes in groups is limited to 20% of the net assets. This restriction is not applicable to securities issued by public sector institutions. A further extension of 5% in the exposure can be given with the approval of the Board of Trustees in advance.
- Units can be transferred from one scheme to another within Franklin Templeton Mutual Fund at the market price at the time of transfer if the investment of both the schemes is similar.
- Investments cannot be made in unlisted securities, securities issued by private association or groups, or listed instruments of group companies that exceed the 25% of net assets limit.
- The mutual fund is permitted to make investments in short-term deposits with certain commercial banks.
- Investments can be made under the scheme as per the guidelines provided by SEBI or the Central Government.
Dividend Policy of Franklin India Bluechip Fund - Dividend
The trustee of the scheme provides dividends to the unitholders on a daily, weekly, monthly, quarterly, half-yearly, annually or other such frequencies. The frequency and the amount to be paid to the unitholder is deemed by the trustee. Also, there is no guarantee as such that the dividends will be paid on a regular basis. Payment of dividends depends on the distributable surplus available under the scheme.
- Once the dividend is declared, it will be distributed within 30 days.
- The payment will be done by cheque or electronic mode.
- The amount provided will be net of taxes.
- The payment will be made in favour of the unitholder’s registered name . If there is more than one unitholder, the payment will be done in favour of the first registered name.
Other facilities under Franklin India Bluechip Fund - Dividend
Here are a few of the other facilities provided by the company:
- SMS-based transaction option
Investors can choose to transact through the SMS medium by registering their numbers with the AMC. They will be required to send an SMS to initiate transactions using predetermined templates only. The SMS-based transaction facility can be availed only through the registered mobile number.
- Scheme switching
Investors can choose to exchange or switch from one plan to another or one scheme to another offered by Franklin Templeton Mutual Fund under certain conditions mentioned by the AMC.
- Step-up SIP option
This facility allows investors to increase the investment amount of an SIP by a certain amount at a certain frequency.
- Pause SIP
Investors can choose to pause an SIP for a particular month by giving a 20 days’ notice. The option is available for the quarterly and monthly frequencies of SIP.
Why you should Invest in Franklin India Bluechip Fund - Dividend
Franklin Templeton has been in the asset management industry for over 7 decades. The vast experience of the company makes it a good choice for investors. The company is associated with many experts in the field of mutual funds who can help the investors understand and make investments efficiently. The dividend option of the scheme allows individuals to receive cash benefits at certain intervals and they need not wait until the end of the term of the fund. The plan will prove to be beneficial to all those who want to invest for a short period and want to receive regular sources of income.
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