Franklin India Smaller Cos Fund(D)-Direct Plan

Templeton Asset Management India Pvt. Ltd. commenced its operations in India in 1996. The firm started its operations with the launch of Templeton India Growth Fund in the same year and since then the firm has become a leading investment firm in the country, trusted by many.

Its parent company, Franklin Templeton Investments has been a pioneer in the global investment sector since 1947.

The firm has over 600 skilled professionals working across 28 countries, catering to the investment needs of the customers across the globe. The firm has 46 research offices and 13 global trading offices that the customers can reach out to in case of any emergency. With 15 local asset management teams serving the customers in over 180 countries, the firm is easily one of the most reputable asset management companies (AMC) worldwide.

Franklin India Smaller Companies Fund - Direct - Growth Scheme is one of the open-ended equity schemes offered by Templeton Asset Management India. The scheme is a direct-growth plan with reinvestment and payout options. Direct plans are mutual fund schemes that do not charge the investors with any additional expenses such as trail fees, distributor fees, transaction charges, etc., the NAV for such schemes will be higher. Mutual fund schemes with growth options will not generate any regular income, instead the money will be reinvested in the same scheme or another scheme depending on the investor’s choice, till the plan reaches its maturity.

Investment Objective of Franklin India Smaller Companies Fund - Direct - Growth Scheme

The investment objective of the scheme is to generate capital growth for the investor over a long period by investing primarily in small cap firms.

Key Features of Franklin India Smaller Companies Fund

Some of the significant features of the Franklin India Smaller Companies Fund are as indicated in the table below:

Investment Amount for Franklin India Smaller Companies Fund - Direct - Growth Scheme

The investment amount for Franklin India Smaller Companies Fund - Direct - Growth Scheme is as shown in the table:

Asset Allocation for Franklin India Smaller Companies Fund - Direct - Growth Scheme

Asset allocation for Franklin India Smaller Companies Fund - Direct - Growth Scheme is as shown in the table:

Who can Invest in Franklin India Smaller Companies Fund - Direct - Growth Scheme

Investors looking to generate capital growth over a long period by investing primarily in small cap firms can invest in the Franklin India Smaller Companies Fund - Direct - Growth Scheme.

The following are a few categories of individuals who are eligible to invest in the Franklin India Smaller Companies Fund - Direct - Growth Scheme:

• A single Individual who is an Indian resident
• A group of individuals (not more than 3) who are Indian residents
• On behalf of the minors, the parents can take the initiative
• Firms/domestic corporate entities/Public Sector Undertakings that registered in India
• Banks, investment institutions, financial institutions, etc.
• NRIs (Non-Resident Indians) and OCIs (Overseas Citizens of India)
• Hindu Undivided Family (HUF)
• Organisations that involve in science and other research-oriented sectors

NAV Disclosure and Benchmark for Franklin India Smaller Companies Fund - Direct - Growth Scheme

• Benchmark index of the scheme - Nifty Smallcap 250
• NAV Disclosure of the scheme:
  • The scheme’s NAV is calculated on every business day and the figures will be available on the official websites of Templeton Asset Management India and Association of Mutual Funds of India (AMFI).
  • The complete asset management portfolio of the scheme will be published on a half-yearly basis in adherence to the SEBI (mutual fund) guidelines.
  • The scheme’s asset management portfolio will be disclosed on the last day of every month, as on the last day of every 6 months, on the official website of the AMC as well as AMFI.

Franklin India Smaller Companies Fund - Direct - Growth Scheme Manager

As on 27 June 2018, the following fund managers are responsible for managing the asset management portfolio of the Franklin India Smaller Companies Fund - Direct - Growth Scheme:

• R. Janakiraman, aged 47 years, is the Vice President and Portfolio Manager – Franklin Equity. Besides the Franklin India Smaller Companies Fund, he manages a few other funds as well such as the Franklin India Equity Fund, the Franklin India Prima Fund, the Franklin India Equity Advantage Fund, the Franklin India Opportunities Fund, and the Franklin India Taxshield.
• Hari Shyamsunder, aged 36 years, is the Vice President, Senior Research Analyst, and Portfolio Manager. Besides the Franklin India Smaller Companies Fund, he manages a few other funds as well such as Franklin India Opportunities Fund and Franklin India Prima Fund.
• Srikesh Nair, aged 33 years, is the Senior Manager & Research Associate - Franklin Equity.

He is the dedicated fund manager for all the investments made in overseas equity funds. Besides this, he is also the fund manager for Franklin India Feeder – Franklin U.S Opportunities Fund and Franklin India Feeder - Franklin Europe Growth Fund.

Investment Restrictions of Franklin India Smaller Companies Fund - Direct - Growth Scheme

The investment restrictions applicable to Franklin India Smaller Companies Fund - Direct - Growth Scheme are as follows:

• Adhering to the guidelines set by Securities and Exchange Board of India (SEBI)/Central Government/Reserve Bank of India (RBI) from time to time, the scheme is permitted to invest in other investment securities available in the market.
• The scheme cannot invest in the following:
  • Any unlisted investment instrument of an associate firm/group company of the sponsor
  • Any investment instrument issued via private placement by the group company/associate firm of the sponsor
  • Any listed investment instrument of the sponsor’s group company which exceeds 25% of the scheme’s NAV
• The transfer of investment from the source scheme to the targeted scheme will only be permitted under the following conditions:
  • The transfers made will be done with respect to the current market price for the quoted investment securities on spot basis
  • The transferred instruments will adhere to the investment objective of the targeted scheme to which the transfer was made
• Irrespective of any residual maturity period, certain investment restrictions set under SEBI will be applicable on debentures.
• Sector Exposure for the scheme - The investment exposure in a certain sector should not exceed 25% of the scheme’s NAV.
• Group Exposure for the scheme - The total investment exposure of a scheme in a group should not exceed 20% of the scheme’s NAV.
• The scheme cannot invest over 10% of its NAV in the securities of debt funds such as money market and non-money market instruments issued by a single entity, where the securities are rated above the investment grade by an authorised credit rating agency.
• The scheme cannot invest over 10% of its NAV in equity funds and equity-related securities of the AMC.

Dividend Policy of Franklin India Smaller Companies Fund - Direct - Growth Scheme

The dividend policy of Franklin India Smaller Companies Fund - Direct - Growth Scheme are as follows:

• The AMC should declare the dividends under the scheme on a daily, weekly, monthly, quarterly, or half-yearly basis.
• To ensure the dividends are processed correctly, the scheme has the right to stop the sale of shares for a certain period as deemed necessary by the firm.
• The dividends will be issued within 30 days from the time the dividends have been declared.
• Dividends will be issued via cheque/electronic transfer, depending on the payment mode the investor has opted for. The payment will be made in favour of the shareholder’s name.

Facilities under Franklin India Smaller Companies Fund - Direct - Growth Scheme

Some of the facilities offered under Franklin India Smaller Companies Fund - Direct - Growth Scheme are as follows:

• Exchanges/Switch facility

  Under the Exchanges facility of the scheme, the investors are allowed to exchange/switch the investments from the source scheme to the targeted scheme, adhering to the set guidelines and applicable NAV.

• Systematic Investment Plan (SIP)

  The SIP allows the investor to save money by investing a certain amount on a regular basis over a specific period continuously. The amount will be used by the scheme to buy additional shares. The following are the variants of SIP:

• Step-up SIP facility

  Under the Step-up SIP facility, the investor will be given the opportunity to increase the SIP installment by a fixed amount at predefined intervals.

• Pause SIP facility

  An existing investor, under the Pause SIP facility, will be permitted to pause SIP at any point in time.

• Any Date SIP facility

  Under the Any Date SIP facility the investor will be able to commence SIP on any date or change the date for the existing SIPs.

  • New SIP - When it comes to availing a SIP, the investor can opt any date to start paying towards the SIP plan availed, thereby activating the plan.
  • Existing SIP - When it comes to existing SIPs, the investor can request the AMC to change the payment due date 30 days prior to the next installment date.
• SIP Amount Change facility

  The SIP Amount Change facility permits the investors of the scheme to change the amount paid towards SIP without cancelling it.

• Flexi SIP facility

  Under the Flexi SIP facility, the investors are allowed to change the SIP amount for one month or a quarter if he/she is short of cash or have surplus amount during any of the months.

• Systematic Transfer Plan (STP)

  The investor can opt to transfer from one scheme to any other scheme on a daily/weekly/monthly/quarterly basis via the Systematic Transfer Plan.

• Dividend Transfer Plan (DTP)

  By opting for the Dividend Transfer Plan, the investor will be able to activate automatic transfer of the dividend declared under the source scheme to any of the targeted schemes. The plan is available to investors of open-ended dividend schemes, except for the daily dividend plan, weekly dividend plan, and Franklin India Floating Rate Fund.

• Systematic Withdrawal Plan (SWP)

  The investor, under the Systematic Withdrawal Plan, can opt to receive payments from the account on a regular or quarterly basis.

Why should you Invest in Franklin India Smaller Companies Fund - Direct - Growth Scheme

The following are the reasons why you should invest in Franklin India Smaller Companies Fund - Direct - Growth Scheme:

• The scheme aims at generating capital growth over a long period for the investor by primarily investing in small cap firms.
• The firm identifies the firms that exhibit good growth and the potential to become market leaders, thus generating capital growth over time.
• Certain tax benefits applicable to the scheme are offered as per the Income-tax Act, 1961.
• The Templeton Asset Management India Pvt. Ltd. that offers the Franklin India Smaller Companies Fund - Direct - Growth Scheme is backed by one of the most reputable and leading global investments firms, Franklin Templeton Investments. The parent company offers the stability required for sailing through the dynamic changes in the market.
• The experienced fund managers are amiable and focus on offering good investment advice to all the customers.
• Due to the complete disclosure of the scheme’s NAV and asset management portfolio, the investors can track the returns generated on their investments and based on which take any investment decisions to switch/withdraw/re-invest.

GST rate of 18% applicable for all financial services effective July 1, 2017.