Franklin Templeton Investments has been managing assets for retail clients, high net-worth clients, and institutional clients since 1947. The company has its presence in Asia, Europe, Middle East, Africa, South America and North America. All in all, the company serves over 180 countries and has a total of 600 investment professionals across the world. Franklin Templeton India is relatively new and was set up in the year 1996. The company started the mutual fund business with the launch of their fund – Templeton India Growth Fund.
The company offers various mutual fund options such as equity funds, hybrid funds, liquid funds, and so on. Investors can choose the fund type and the scheme based on their investment appetite and financial stability. Franklin India Prima Fund is an equity fund scheme that has two plan options – Growth and Dividend. And each of these options can be availed as a regular plan or a direct plan.
The growth option under the scheme is ideal for individuals looking for long-term investment options. The plan ensures that there is capital appreciation as well as minimal returns. The focus, however, is reinvestment of the yields of the investment to provide high returns at the end of the term. The direct option of the scheme allows the investor to make the investments himself/herself without having to depend on mutual fund brokers or distributors. The investors themselves can choose their investment platforms. This eliminates payment of distribution or trail fees that are paid to the mutual fund brokers.
Investment Objective of Franklin India Prima Fund - Direct - Growth
The primary objective of the scheme is to provide capital appreciation for medium and long-term investments. The secondary objective is to receive income from the investments made.
Key Features of Franklin India Prima Fund - Direct - Growth
Here are some of the significant features of the scheme:
|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 Prima Fund - Direct - Growth
The investment amount details of the scheme are as mentioned below:
|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 one year of being issued, 1% will be charged|
The minimum balance that is required to be maintained in the account is Rs.1,000. In case the unitholder fails to increase the balance amount, the mutual fund may choose to close the account after sending a written notice to the individual.
Asset Allocation for Franklin India Prima Fund - Direct - Growth
The investment ranges for the below-mentioned instruments under normal market conditions will be as follows:
|Instruments||Allocations (Percentage of total assets)||Risk Profile|
|Equity and equity-related securities of mid-cap companies||65% - 100%||Medium to high|
|Equity and equity-related securities of non-mid-cap companies||0% - 35%||Medium to high|
|Debt and money-market securities||0% - 35%||Low to medium|
Who can Invest in Franklin India Prima Fund - Direct - Growth
The following entities can subscribe to the Franklin India Prima Fund - Direct - Growth scheme:
- Resident Indian individuals - single or joint (not exceeding 3 individuals in case of joint holding)
- Parent or legal guardian in place of minor
- Hindu Undivided Family
- Public Sector Undertakings (PSUs), companies, domestic corporate bodies, sole proprietorship companies, partnership firms, and limited liability partnerships
- Religious trusts, charitable trusts, or other trusts permitted to invest in mutual funds
- Financial and investment institutions, and banks
- Overseas Citizens of India and Non-resident Indians
- Foreign portfolio investors and foreign institutional investors
- Societies, co-operative societies, association/body of persons, endowments, wakf boards, trusts and clubs
- Army, Navy, Air Force, Para-military funds
- Research organisations like scientific research organisations and industrial research organisations
- Alternative investment funds and other mutual fund schemes
- Other associations, bodies, individuals, etc. permitted to invest in mutual funds
NAV Disclosure and Benchmark for Franklin India Prima Fund - Direct - Growth
NAV: To calculate the NAV of a scheme, the liabilities of the scheme need to be deducted from the sum of the market value of the investments under the scheme and the other assets, including the interest accumulated. The result should then be divided by the number of units remaining at the end of the day. The resulting number is the NAV of the scheme. The NAV is calculated up to four decimals and is done so on every business day. The figure is put up on the official website of the AMC.
Liquidity: The scheme can be repurchased or redeemed on any business day. The proceeds of the redemption are sent out to the individuals within 10 days after the AMC receives the redemption request at the Official Points of Acceptance of Transactions.
Benchmark Index: The benchmark index of the scheme is Nifty Midcap 150.
Fund Managers of Franklin India Prima Fund - Direct - Growth
The fund managers of R. Janakiraman, Hari Shyamsunder, and Srikesh Nair.
R. Janakiraman, who is the Vice President and Portfolio Manager of Franklin Equity, manages a total of 6 schemes and has been managing the Franklin India Prima Fund - Direct - Growth scheme for 10.38 years as on 27 June 2018.
Hari Shyamsunder, the Vice President, Senior Research Analyst and Portfolio Manager of Franklin Equity manages 3 schemes. Franklin India Prima Fund - Direct - Growth, is one of the 3 schemes he manages and has been managing it for 2.15 years.
Srikesh Nair is the Senior Manager & Research Associate of Franklin Equity and a dedicated fund manager for investments in foreign securities including Franklin India Prima Fund - Direct - Growth. He has been managing this scheme for 2.58 years.
Investment Restrictions of Franklin India Prima Fund - Direct - Growth
The restrictions that are applicable to the Franklin India Prima Fund - Direct - Growth scheme are:
- The scheme’s corpus can be utilised to make investments only in transferable securities.
- The scheme is required to use deliveries as a basis for transactions of investment instruments. In case of purchase of securities, the scheme receives the relevant securities and in case of sale, the scheme delivers the relevant securities.
- For long-term investments, the mutual fund will purchase or transfer the securities in the name of the mutual fund on account of the scheme concerned.
- Investments cannot be made in Fund of Funds scheme.
- Loans cannot be availed from the mutual fund for any purpose whatsoever.
- The scheme can make investments in another scheme from Franklin India or another AMC, without any charges, as long as the aggregate inter-scheme investment of all the schemes put together is not more than 5% of the NAV of the mutual fund.
- The mutual fund cannot hold more than 10% of a company’s voting rights.
- The maximum investment limit for equity or equity-related securities of a company is 10% of NAV and for unlisted equity and equity-related securities is 5% of NAV.
- The maximum investment limit for unrated debt securities is 10% of NAV and the total investment for such securities cannot exceed 25% of the NAV.
- The investment limit for debt instruments, including money-market as well as non-money-market instruments, issued by a single issuer is 10% of NAV. The limit, however, can be extended by 2% of NAV with the approval of the boards - the Board of the AMC and Board of Trustees. This restriction is not applicable to collateralised borrowing, treasury bills, government securities, and lending obligations.
The same restriction is applicable to debentures as well.
- The total exposure of the scheme in a certain sector cannot cross the 25% of NAV limit. The financial services sector is allowed an additional exposure of 15% of NAV.
- The total exposure limit of group schemes is 20% of NAV, which can be extended by 5% with the approval of the board.
- The transfer from one scheme to another will be done at the market price prevailing at the time of such transfer. The scheme to which the transfer has been made should have a similar investment objective of the former scheme.
- Investments cannot be made in unlisted securities of a group company or an associate of the sponsor, securities privately placed by an associate company or group company of the sponsor, or listed securities issued by group companies of the sponsor which exceeds the 25% of NAV limit.
- The scheme, under certain conditions, can invest in short-term deposits not exceeding 91 days’ time with scheduled commercial banks. However, more than 15% of the net assets cannot be invested in such short-term deposits.
- The scheme can invest in other financial instruments according to the guidelines provided by the Central Government, SEBI or RBI.
Dividend Policy of Franklin India Prima Fund - Direct - Growth
The trustee will declare dividends from time to time - daily, monthly, half-yearly, yearly, etc. based on the distributable surplus available with the mutual fund. The frequency of distribution of the dividend, the rate of the dividend, or the regularity of the payment of the dividends is not guaranteed. The trustee, when there is an availability of funds, will declare dividends for the unitholders whose names are present in the register of unitholders on the record date. Once the dividend is declared, it is distributed within 30 days from the day of declaration of the dividends. If there is more than one unitholder, the unitholder, whose name appears first on the application form, will be provided with the dividend.
Distribution of dividends
The dividends are distributed to the unitholders by cheque or electronically and the payment made is net of taxes. The unitholders are required to provide their bank account details in the application form to prevent loss or theft of the dividends. The dividend that is declared can be reinvested in the scheme.
Other facilities under Franklin India Prima Fund - Direct - Growth
Franklin India offers a few other facilities. The details of the same are given below:
- Transaction option through SMS: Unitholders can send predetermined SMS templates to initiate transactions using their registered mobile numbers. To subscribe to this option, one has to submit the SMS transaction registration form with the NACH registration form at the AMC’s branch.
- Exchange or switch scheme: Investors are allowed to switch from one scheme to another at the prevailing NAV as long as no book closure has been made for either of the schemes, the scheme that is to be exchanged is not in any kind of lock-in period, and the amount that is to be exchanged is equal to or is of a higher amount than the minimum investment amount of the new scheme.
- Pause SIP: Investors can choose to pause the monthly and quarterly SIPs by sending a notice to the AMC 20 days before the following SIP date. The option can be availed multiple times but a request needs to be made each time.
Why you should invest in Franklin India Prima Fund - Direct - Growth
Promoted by an organisation as huge as Franklin Templeton Investments, Franklin India is one of the best asset management companies in the country. The company offers a variety of funds and investors can choose the fund type based on the requirement such as retirement, wealth creation, tax planning, child’s education, saving for a holiday, building a dream home, etc. The experts in Franklin India will guide the unitholders throughout the period so that their ultimate goal is reached. The AMC has many experienced professionals who have wide knowledge and experience in the finance industry.
GST rate of 18% applicable for all financial services effective July 1, 2017.