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Franklin India Feeder - Franklin US Opportunities Fund

Franklin India Feeder – Franklin US Opportunities Growth Fund

The Franklin India Feeder – Franklin US Opportunities Growth Fund is an open ended fund of funds investing in overseas markets in order to provide capital appreciation. It primarily invests in units of Franklin US Opportunities Growth Fund, which in turn invests in securities of companies which have their principal business in United States of America. This plan is suitable for individuals with a long investment horizon and are not averse to taking risks.

Type or nature of fund

Franklin India Feeder – Franklin US Opportunities Growth Fund is an open ended fund of funds scheme which invests overseas.

Investment objective

The primary objective of Franklin India Feeder – Franklin US Opportunities Growth Fund is to invest in an overseas markets, specifically in units of Franklin US Opportunities Growth Fund which in turn invest in securities of companies incorporated in and having their main business in USA in order to offer capital appreciation.

Fund information

Inception date February 6, 2012
CRISIL rank Not ranked by CRISIL
Schemes
  • Growth Plan
  • Dividend Plan (reinvestment and payout option available)
  • Direct Growth Plan
  • Direct Dividend Plan (reinvestment and payout option available)
Entry load Nil
Exit load 1% for redemptions within 36 months of allotment
Minimum investment Rs 5,000
Product label – Risk and target investors High Risk product designed for investors looking for long term capital appreciation by investing in an overseas equity fund which deals primarily with American companies.
Benchmark Russell 3000 Growth Index
  • Russell 3000 Growth Index is a benchmark which measures the performance of broad growth segment of US equity. It is designed to offer a comprehensive and unbiased benchmark for the broad growth market in United States of America.
SIP (Systematic Investment Plan) Rs 500 (minimum 12 SIP investments worth Rs 500 each)
SWP (Systematic Withdrawal Plan) Yes. Investors with a minimum account balance of Rs 25,000 can opt for either a Monthly or quarterly option with a choice between fixed and capital appreciation.
STP (Systematic Transfer Plan) Yes, under the condition that all redeemed units should be reinvested in another scheme.
Redemption Minimum Redemption Amount – Rs 1,000.
Taxation (on investment and on redemption) Investors must consult a tax adviser/expert to get specific details of tax implications arising out of their investment in this scheme.

Fund managers

Franklin India Feeder – Franklin US Opportunities Growth Fund is managed by Miss Roshi Jain.

Ms Roshi Jain

Designation and Work

  • Ms Roshi Jain is the current Vice President of Portfolio Management - Equity at Franklin Templeton India. She is the portfolio manager for multiple funds including Franklin India Flexi Cap, Franklin India High Growth Companies Fund, Franklin Asia Equity Fund and Franklin Build India Fund, apart from being a co-portfolio manager for other funds.
  • Ms Jain has been in the investment field for over 10 years, having previously worked at Goldman Sachs, London.

Education

  • Ms Jain is CFA Charter Holder from the CFA Institute of USA.
  • Ms Jain also holds a PGDM from IIM Ahmedabad and is a qualified CA.

Investment philosophy or strategy

Franklin India Feeder –Franklin US Opportunities Growth Fund is a passively handled fund which uses both bottom-up and top-down research to find companies which are on par with its investment goal. The fund aims to identify and invest in high quality companies which have a history of revenue growth, offering better profitability. This fund diversifies its portfolio by investing in companies in different sectors and market caps in a bid to reduce the risk factor involved.

Portfolio – Sector / Top 10 holdings

Company Industry Percentage
Celgene Corp Healthcare 4.09
Actavis PLC Pharmaceutical 3.6
Mastercard Inc Finance 3.47
Google Inc IT 3.35
SBA Communication Corp Telecommunication 3.17
Facebook Inc IT 3.01
Apple Inc Consumer Goods 2.97
Gilead Sciences Inc Pharmaceutical 2.38
Visa Inc Finance 2.33
Precision Castparts Corp Industrial products 2.14

Risk measures

The risk measures as of August 31, 2015 are mentioned below.

Sharpe ratio (Annualized) 1.15
R-squared N/A
Beta N/A
Standard Deviation 12.35

Performance

AUM Rs 747.10 crores (as of February 27, 2015)
NAV (as of 04/09/2015)

Dividend – 20.33

Growth – 20.33

Direct Dividend – 20.94

Direct Growth – 20.94

Returns

The returns provided by Franklin India Feeder – Franklin US Opportunities Growth Fund in comparison to market returns are shown in the table below.

Period Fund returns Russell 3000 Growth Index
March 2012 – March 2013 11.39% 21.96%
March 2013 – March 2014 34.48% 34.99%
March 2014 – March 2015 20.53% 17.81%

Expense Ratio

The current expense ratio of Franklin India Feeder – Franklin US Opportunities Growth Fund is 1.82% for regular and 0.56% for direct (As of July 31, 2015).

Expert view of the fund

Franklin India Feeder – Franklin US Opportunities Fund offers a great platform for Indian investors who are keen to ride the development wave in United States of America. USA, is perhaps the most powerful economy today, and could be considered an investors dream market. While it has a lot to offer to Indian investors, one should also be careful before investing in it, as currency fluctuations could wipe out any profit. The fund has performed reasonably well, giving decent returns to investors and could be an option for those looking to invest in high risk markets for a long period of time.

How to apply – online + distributors

One can register for this fund either through the online medium or through distributors. Anyone who wishes to invest/register themselves needs to log onto the official website of Franklin Templeton India and follow the basic steps mentioned. One should provide his/her PAN details, mobile number, email id, and bank details in order to successfully register online.

Individuals can also register through authorised distributors like MF branches or banks which are allowed to deal in such transactions. They are required to fill in an application form (KYC), enter relevant data about their scheme of choice and submit the form.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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