Franklin Templeton is a financial service provider that has been operating in the Indian market for the last two decades. The company has a range of funds and solutions for investors who wish to maximize their wealth. Franklin India Prima Fund - Growth is an equity scheme offered by the company. This fund is available in both growth and dividend variants. The fund has performed well over the years and has consistently declared dividend in the last 20 years.
Investment objective of Franklin India Prima Fund - Growth
This fund primarily focuses on providing medium to long-term capital appreciation through investments made predominantly in mid cap stocks. The secondary objective of this fund is to generate income for unitholders.
Key features of Franklin India Prima Fund - Growth
This scheme comes with the following list of features:
|Type of fund||Open-ended equity scheme|
|Plans available||Growth Plan Dividend Plan (reinvestment/payout options) Direct - Growth Plan Direct - Dividend Plan|
|Options under each plan||Growth option/Dividend option (reinvestment or payout) The option must be clearly indicated while subscribing to the plan.|
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment amount for Franklin India Prima Fund - Growth
|Minimum application amount||Rs.5,000 and in multiples of Re.1 thereafter|
|Minimum additional investment||Rs.1,000 and in multiples of Re.1 thereafter|
|Minimum installment for Systematic Investment Plan (SIP)||Rs.500 per installment for a minimum of 12 installments (monthly or quarterly) Or Rs.1,000 per installment for a minimum of 6 installments (monthly or quarterly)|
|Minimum installment for Systematic Withdrawal Plan (SWP)||Regular schemes - Rs.1,000 (monthly or quarterly) Institutional plan - Rs.1 lakh Super institutional plan - Rs.10 lakh|
|Minimum installment for Systematic Transfer Plan (STP)||Daily - Rs.500 for at least 2 installments Weekly - Rs.1,000 for at least 2 installments Monthly - Rs.1,000 for at least 2 installments Quarterly - Rs.1,000 for at least 2 installments|
|Entry load||Not applicable|
*Note: A minimum balance of Rs.1,000 must be maintained by investors in their accounts. If the minimum balance falls below this amount due to redemptions, the fund will automatically close the investor’s account and pay the outstanding balance.
Asset allocation for Franklin India Prima Fund - Growth
|Instrument||Allocations (percentage of total assets)||Risk Profile|
|Equity and equity related instruments of midcap companies||65%||100%||Medium to High|
|Equity and equity related instruments of non midcap companies||0%||35%||Medium to High|
|Debt and money market instruments||0%||35%||Low to Medium|
Who can invest in Franklin India Prima Fund - Growth
The following entities are qualified to invest in Franklin India Prima Fund:
- Adult individuals residing in India, either singly or jointly (maximum of 3 in an account)
- Parents or legal guardians on behalf of minors
- Companies and domestic corporate bodies
- Partnership firms including limited liability partnerships
- Public sector undertakings registered in India
- Co-operative societies
- Associations and private bodies
- Trusts and clubs that are authorised to invest in mutual funds
- Banks and other financial institutions
- Charitable organisations and religious trusts
- Non-resident Indians and individuals of Indian origin
- Hindu Undivided Families
- Scientific or research institutes
- Funds associated with the army, navy, air force, or paramilitary organisations
- Foreign institutional investors and other such entities registered with SEBI
- Other mutual funds as per the regulations put forth by SEBI
*Note: The list given above is only indicative. Prospective investors are advised to contact the company directly or consult with their financial advisors to check if this scheme is suitable to them.
NAV Disclosure and Benchmark for Franklin India Prima Fund - Growth
The NAV of the fund will be calculated every business day and updated on the company’s official website (www.franklintempletonindia.com). The NAV of the fund will also be published in the official website of the Association of Mutual Funds of India (www.amfiindia.com). The NAV will be calculated and rounded off to the fourth decimal place.
As per the regulations set forth by SEBI, the fund will also disclose its half-yearly and annual performances to investors. The scheme’s portfolio details will be shared with investors every half year (March and September). Investors can view this information on the company’s website. Portfolio information till the end of a particular month can be viewed on or before the 10th day of the succeeding month.
The benchmark index of Franklin India Prima Fund - Growth is Nifty Midcap 50.
Franklin India Prima Fund - Growth Fund Manager
This fund is currently being managed by three fund managers who are well experienced in managing mutual funds. R. Janakiraman, who provides equity research support to this scheme, has been managing it for more than 10 years. He has over 21 years of experience in this industry. Hari Shyamsunder has an overall experience of 13 years and is responsible for the scheme’s investments and fund management. Srikesh Nair, who has over 7 years of experience, is the dedicated foreign fund manager of this scheme.
Investment restrictions of Franklin India Prima Fund - Growth
The following investment restrictions apply to this scheme as per the regulations set forth by SEBI:
- As per Regulation 43 of Chapter VI of SEBI (Mutual Funds) Regulations, 1996, this scheme can invest only in transferable securities.
- All purchases and sale of securities under this scheme shall be made only on the basis of deliveries.
- In cases where investments are of long-term nature, purchase and transfer of securities shall happen in the name of the fund.
- This fund shall not provide any loan to investors under any circumstances.
- This fund shall not own more than 10% of any company’s voting rights.
- No investments shall be made in any fund of fund schemes offered by asset management companies.
- Within the scope of investment objectives, this scheme shall invest in any other schemes offered by Franklin Templeton. However, the interscheme investments shall not exceed 5% of the fund’s NAV.
- This scheme shall not invest more than 10% of its NAV in the equity and equity related instruments offered by a single issuer.
- The maximum limit of investments made in unlisted equity and equity related instruments is capped at 5% of the fund’s NAV.
- The scheme shall not invest more than 10% of its NAV in the debt instruments (money market and non-money market instruments) issued by a single issuer.
- Investments in unrated debt instruments issued by a single issuer shall not exceed 10% of the fund’s NAV. The overall investments made in this instrument shall not exceed 25% of the fund’s NAV.
- The fund’s exposure in a particular sector is restricted to 25% of its NAV. Additional exposure is allowed only for investments in Housing Finance Companies.
- The fund’s exposure in a particular group is restricted to 20% of its NAV.
- The investment restrictions set for debt instruments shall also apply to debentures.
- As per the SEBI regulations, the maximum investment in foreign securities is capped at $50 million per mutual fund. The overall investment that can be made by an asset management company in foreign securities is $300 million.
- By conforming to the investment objectives, transfer of funds from one scheme to another within the same company is allowed.
- This scheme shall not invest in a) unlisted securities of group companies of the sponsor, b) securities issued by the group companies of the sponsor through private placement, and c) listed securities of the group companies of the sponsor which is in excess of 25% of the net assets.
- The company may temporarily park its funds in short term deposits of commercial banks pending deployment of funds in other securities that meets its investment objectives. However, this temporary parking of funds may not exceed 91 days.
- For investments in other markets, the scheme may follow the guidelines issued by the government or SEBI or RBI.
Dividend policy of Franklin India Prima Fund - Growth
The company may declare dividends subject to the availability of distributable surplus. However, the company does not provide any assurance or guarantee that dividends will be declared at regular intervals. Under the growth plan, the dividend amount is used primarily for capital appreciation rather than provide an income payout to investors. In the dividend plan, the declared amount will be paid to investors. The company may take up to 30 days to pay the dividends from the date of declaration.
Other facilities under Franklin India Prima Fund - Growth
Some of the special products available with Franklin India Prima Fund - Growth can be listed as follows:
- Systematic Investment Plan (SIP): Under this facility, people can invest a specified amount periodically (monthly, quarter, etc.) in a bid to save money and generate returns. This facility is ideal for salaried professionals as they can invest a fixed sum of their monthly earnings without worrying about market fluctuations. Through periodic investment, investors can average out the cost of purchasing mutual fund units under this scheme.
- Systematic Transfer Plan (STP): This facility allows investors to transfer money from one scheme to another for the purpose of reinvestment. This facility is intended only for open-ended schemes. The investor can choose the amount to be transferred to the target fund and the frequency of investment. This facility allows transfers to be effected on a weekly, monthly, or quarterly basis. The regulations applicable to signing up for a scheme such as entry load, minimum application amount, etc. may also apply while effecting the transfer.
- Dividend Transfer Plan (DTP): This facility is available for investors who have opted for dividend plans in their open-ended schemes. Here, the dividend amount earned from one scheme will get automatically invested in another scheme offered by Franklin Templeton. The investor may choose the target scheme in which the dividend amount will get invested. The minimum investment requirements applicable to the target scheme must be satisfied during the time of transfer.
- Systematic Withdrawal Plan (SWP): This facility allows unitholders to withdraw a fixed amount from the scheme on a monthly or quarterly basis. The amount withdrawn by the investor will be converted into units and subtracted from the account of the investor. Unitholders may choose the amount to be withdrawn and the frequency of withdrawal. A minimum account balance of Rs.25,000 must be maintained by investors in order to avail this facility.
*Note: A list of all the special products available with the company can be found in the fund’s scheme document.
Why should you invest in Franklin India Prima Fund - Growth
This fund is primarily intended for long-term capital appreciation through equity investments. It can be used by individuals to create long-term wealth for various purposes like their retirement or their children’s education. In the last five years, this fund has witnessed more than 25% growth. Since this fund aims to identify businesses at the early stage of their life cycle, there is a potential for solid growth. It is also worth noting that the dividend plan of the fund has consistently declared dividends for the last 20 years.
GST rate of 18% applicable for all financial services effective July 1, 2017.