Franklin Templeton India is one of the most reputed mutual fund houses in India and was set up in the year 1996 and since then the company has grown by leaps and bounds.
Franklin India Bluechip Fund is an open-ended equity scheme which mainly invests in large-cap companies. Investors availing this scheme can generate long-term capital appreciations and returns. Since this is a growth fund, it will not yield any short-term growth until and unless the investor decides to redeem it.
Investment Objective of Franklin India Bluechip Fund - Growth
The investment objective of the Franklin India Bluechip Fund is to help the investors invest in equity and equity-based instruments and generate long-term capital appreciation. The fund invests in a range of companies which fall under the large cap category.
Key Features of Franklin India Bluechip Fund - Growth
|Type of fund||Open-ended equity scheme|
|Plans available||Investors are offered a direct plan and a regular plan.|
|Options under each plan||
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment Amount for Franklin India Bluechip Fund - Growth
|Minimum investment amount||Rs.5000|
|Minimum additional purchase amount||Rs.1000|
|Minimum installment for Systematic Investment Plan (SIP)||A minimum of Rs.500 for a period of 12 months or a minimum of Rs.1,000 for a period of 6 months.|
|Minimum installment for Systematic Withdrawal Plan (SWP) post the lock-in period||A minimum of Rs.1,000 can be withdrawn on a monthly or a quarterly basis.|
|Exit Load||1% for exit within 12 months of the date of the allotment|
Asset Allocation for Franklin India Bluechip Fund - Growth
|Instruments||Risk Profile||% of Net Asset|
|Equity and Equity-Linked Instruments of large-cap companies||Medium to High||80 - 100%|
|Equity and Equity-Linked Instruments of other companies||Medium to High||0 - 20%|
|Debt and Money Market instruments||Low to Medium||0 - 20%|
Who can invest in Franklin India Bluechip Fund - Growth
The following entities can invest in the Franklin India Bluechip Fund - Growth:
- Residents of India either as a single holder or on a joint basis
- Minor through a guardian or his/her parents
- Companies/ Public Sector undertakings/ Corporate bodies registered in India
- Religious, Charitable, and similar type of Trusts registered in India
- Banks, Investment Institutions, and Financial Institutions
- Hindu Undivided Families (HUF)
- Endowments or Wakf Boards/Co-operative societies/ Societies/Associations of Person or Body of individuals authorised to invest in units of mutual funds
- Partnership Firms, Limited Liability Partnerships (LLP), and Sole Proprietorships
- Army, Navy, Air Force, and other para-military funds and eligible bodies
- Industrial and scientific research organisations
- Institutions, Associations, and Other bodies permitted to invest in the units of mutual funds
- Institutions, individuals, and corporate bodies in conformity with SEBI rules and guidelines and permitted by the AMC may invest in the units of mutual funds
- Mutual Funds and Investment Funds can also invest in a scheme of a mutual fund, subject to SEBI rules and guidelines
- Non-resident Indians (NRI)/Overseas Citizens of India (OCI) on a full repatriation or non-repatriation basis
- Foreign Institutional Investors (FIIs) registered with SEBI on a full repatriation basis
*Note: The above-mentioned list is indicative. Prospective investors are advised to consult with their financial advisors to check if this scheme is suitable to them.
NAV Disclosure and Benchmark for Franklin India Bluechip Fund - Growth
The net asset value or NAV of a scheme can be calculated by dividing the total number of assets of the scheme by the total number of outstanding units. The NAV will be calculated at the end of each business day. The investors can view the NAV of a scheme on www.franklintempletonindia.com and on the official website of the Association of Mutual Funds of India (www.amfiindia.com).
The scheme portfolios will be disclosed by the Mutual Fund on the official websites of both the Franklin Templeton India, and the Association of Mutual Funds of India on the last day of the month/last day of every bi-annual year at the end of March and September or before the tenth day of the upcoming month. The Fund will also publish the half-yearly and the annual results as per the SEBI rules and guidelines. The Benchmark Index of this scheme is Nifty 100.
Franklin India Bluechip Fund - Growth Fund Manager
The fund managers of this scheme are Mr. Anand Radhakrishnan, Ms. Roshi Jain, and Mr. Srikesh Nair who is a dedicated Foreign Fund Manager.
Investment restrictions of Franklin India Bluechip Fund - Growth
Some of the investment restrictions that are specific to the Franklin India Bluechip Fund - Growth are:
- The investments made in the securities via the scheme corpus can only be in the transferable securities under Regulation 43 of Chapter VI of SEBI (Mutual Funds) Regulations, 1996.
- No investments can be made in any Fund of Funds schemes.
- The mutual fund will not advance any loan for any purpose whatsoever.
- The scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fee for it, provided that all the investments made by all the schemes under the same mutual fund or schemes under other mutual funds do not exceed more than 5% of the net asset value of the mutual fund.
- The Mutual Fund under all its schemes will not own more than 10% of any company’s voting rights.
- A maximum of 5% of the net assets can only be invested by the scheme in unlisted equity and other equity-related instruments.
- Not more than 10% of the net assets can be invested by the scheme in unlisted equity and equity-related instruments of other companies.
- Not more than 10% of NAV shall be invested by the scheme in debt instruments including money market instruments and non-money market instruments issued by a single issuer.
- Not more than 10% of the net asset value shall be invested by the scheme in unrated debt instruments. The investment must not exceed more than 25% of the net asset value of the scheme.
- Debentures regardless of any residual maturity period shall attract the investment restrictions, as applicable for debt instruments.
- The scheme may consider investing in other financial market instruments as per the rules and guidelines issued by the Central Government of India/SEBI/RBI.
*Note: A full list of the investment restrictions for SBI Magnum Midcap Fund can be found in the Scheme Information Document.
Dividend Policy of Franklin India Bluechip Fund - Growth
The Asset Management Company can declare the dividends in the scheme at any point in time and frequency as it deems appropriate. There is no guarantee regarding the rate of dividend distribution and the dividend that will be regularly paid to the unitholder.
The scheme also has the right to suspend sales units for any amount of time it deems appropriate prior to the record date so that it can ensure proper processing.
Dividends will be paid within one month of the declaration of the dividends and can be paid via electronic mode or cheque. The payments made will be in favour of the investor’s registered name, or if there is more than one unitholder, of the first-named person on the application form. The unitholder must also provide the details of his/her bank accounts so that the scheme can protect him/her from any loss or theft of the dividend cheques.
The manner and procedure of payment of dividend shall be in line with the circulars and guidelines by SEBI.
Other Facilities under Franklin India Bluechip Fund - Growth
Some of the facilities provided under Franklin India Bluechip Fund are:
- Step-up SIP: Those investors who are availing the SIP option can increase the SIP amount at a certain interval of time. This allows the investor to enhance his/her flexibility of investing a higher amount during the tenure of the SIP.
- Pause SIP: An investor who is availing the SIP option can pause an SIP at any point in time. The notice for the pausing of SIP must be submitted at least 20 days prior to the next date of SIP.
- New SIP: Under this facility, the investor can choose any date of a month for the SIP installments. In case the date chosen by the investor falls on a holiday or on a day when no business can be conducted, the SIP installment will be applied on the next business day.
- SIP Amount Change facility: Under this facility, the investor can change the SIP amount without having to cancel the ongoing SIP.
- Flexi SIP facility: The investor if experiencing a cash crunch, or having a surplus of cash may choose to alter the installment amount for a single month or a quarter.
- Systematic Transfer Plan (STP): The investor availing this facility may choose to transfer his/her investments to another Franklin Templeton India scheme on a weekly, monthly, quarterly, half-yearly, or on a yearly basis.
*Note: A full list of special facilities that are offered to unitholders can be found in the Scheme Information Document.
Why should you invest in Franklin Templeton India Bluechip Fund - Growth
Franklin Templeton India Bluechip Fund - Growth is an open-ended scheme which invests in large-cap companies and allows the investor to generate long-term capital gains and returns. Apart from that, an investor can also enjoy the SIP facility and choose the amount he would like to invest in including the frequency. One can also alter the investment amount in case of any cash crunch or surplus cash the investor may experience. The person can also pause his/her SIP 20 days prior to the next SIP and also avail the STP facility where he/she can transfer his/her units to another Franklin Templeton India scheme. An investor availing this scheme will also get to enjoy various tax benefits under the Income Tax Act, 1961.
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