Franklin India Smaller Companies Fund - Growth

The Franklin India Smaller Companies Fund is a mutual fund which is offered by Franklin Templeton Asset Management (India) Pvt. Ltd. The latter is one of the leading asset management companies, not only in India but also the world. It offers a wide variety of products for the investors to meet their investment criteria. Franklin Templeton Asset Management (India) Pvt. Ltd. is spread across the world in 28 countries. The Franklin India Smaller Companies Fund is one of the equity schemes which is offered by the asset management company (AMC).

Investment Objective of the Franklin India Smaller Companies Fund - Growth

The primary investment objective of the Franklin India Smaller Companies Fund - Growth is to generate long term capital appreciation. This is predominantly done through investments made in equity and other securities which are related to equity of small cap companies.

Key Features of the Franklin India Smaller Companies Fund - Growth

The key features of the Franklin India Smaller Companies Fund - Growth scheme can be summed up as follows:

Investment Amount for the Franklin India Smaller Companies Fund - Growth

Asset Allocation of the Franklin India Smaller Companies Fund - Growth

Who can invest in the Franklin India Smaller Companies Fund - Growth?

The following entities will be eligible to subscribe to the units of the Franklin India Smaller Companies Fund - Growth scheme:

• Adult individuals (either singly or jointly) and Resident of India. However, a maximum of 3 adult individuals can subscribe jointly to the units
• Parents or Guardians of minors on behalf of the minor
• Companies
• Public Sector Undertakings (PSUs) which are registered in India
• Domestic Corporate Bodies
• Banks
• Investment institutions
• Financial institutions
• Charitable, religious, or other trusts who are authorised to spend in mutual funds
• Hindu Undivided Family (HUF) through the Karta
• Non-Resident Indians (NRIs)
• Overseas Citizen of India (OCI)
• Foreign institutional investors
• Co-operative societies
• Societies
• Wakf Boards or Endowments
• Association of Persons (AOP)
• Body of Individuals (BOI)
• Limited Liability Partnerships (LLPs)
• Sole Proprietorship
• Partnership Firms
• Scientific research organisations and/or Industrial research organisations
• Bodies and units created by Air Force
• Bodies and units created by Army
• Bodies and units created by other paramilitary units
• Bodies and units created by Navy
• Mutual fund schemes or Alternative Investment Funds
• Bodies corporate and so on.

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

Under the scheme, the Net Asset Value or NAV of each unit is computed by dividing the net assets of the scheme by the total number of units that are outstanding on the date of valuation. This calculation is done on the basis of the norms of valuation as prescribed in Schedule VIII of the Securities and Exchange Board of India (Mutual Funds) Regulations.

The Net Asset Value (NAV) will be calculated and published by the end of every business day. The NAV can be viewed on the official website of the asset management company (www.franklintempletonindia.com) and the AMFI website (www.amfiindia.com). The NAV is calculated up to 4 decimal places. The fund would also publish a full portfolio disclosure every 6 months as per the regulations of the SEBI.

The benchmark of the Franklin India Smaller Companies Fund - Growth is Nifty Smallcap 250.

Franklin India Smaller Companies Fund - Growth Fund Manager

As on 27 June 2018, the Fund Managers for the Franklin India Smaller Companies Fund - Growth are:

1. Mr. Janakiraman Rengaraju
2. Mr. Hari Shyamsunder
3. Mr. Srikesh Karunakaran Nair

Mr. Janakiraman Rengaraju has been managing the fund for a tenure of more than 10 years. He has a BE degree along with a PGDM degree from IIM Bangalore. Mr. Hari Shyamsunder has been managing the fund for a tenure of a little more than 2 years. He has a B.Tech along with a Postgraduate Diploma degree in Management from IIM Bangalore and a Chartered Financial Analyst (CFA) degree from CFA Institute. Mr. Srikesh Karunakaran Nair has been managing the fund for almost 3 years. He has a B.S. Marine Engineering from BITS Pilani along with a Postgraduate Diploma degree in Management from Management Development Institute, Gurugram.

Investment Restrictions of the Franklin India Smaller Companies Fund - Growth

As per the regulations of SEBI (MF), there are certain restrictions which are applicable at the time of making investments. Some of the restrictions are as follows:

• As per Regulation 43 of Chapter VI of Securities and Exchange Board of India (Mutual Fund) Regulations, 1996, investments would only be in transferable securities from the scheme’s corpus.
• Investments made in debt instruments issued by a single issuer should not exceed 10% of the Net Asset Value (NAV) of the mutual fund scheme.
• The limit of investments made in debt instruments which are issued by a single issuer might have an extension of up to 12% of the Net Asset Value (NAV) of the scheme, if it is approved by the Board of Trustees and the Board of Directors (BOD) of the Asset Management Company (AMC).
• The investments can be transferred from one scheme to another scheme under the same mutual fund. However, there are certain conditions which are required to be fulfilled to make the transfer.
• Investments in other financial market investments can be made by the scheme on the basis of the guidelines which are prescribed by the Central Government, RBI, or SEBI from time to time.
• Investments in unrated debt instruments issued by a single issuer should not exceed 10% of the Net Asset Value (NAV) of the mutual fund scheme. The total investment in such instruments, on the other hand, should not be more than 25% of the Net Asset Value (NAV) of the mutual fund scheme.
• A company’s paid up capital carrying the voting rights should not be owned by all the schemes under a mutual fund beyond the extent of 10%.
• No investments should be made in fund of fund scheme by the schemes.
• Mutual funds should not make an investment in:
• any security of an associate or group company of the sponsor which is unlisted
• any security whose issuance is caused by the private placement made by an associate or group company of the sponsor
• the securities belonging to group companies of the sponsor which are in excess of 25% of the net assets while being listed.
• Investments should not be made by mutual fund schemes in equity shares of any one company exceeding the limit of 10% of its Net Asset Value (NAV).
• The scheme should not advance any loans for any purpose.
• A mutual fund can only invest 5% of its Net Asset Value (NAV) in equity shares and other instruments related to equity which are unlisted. However, this limit is for open ended schemes only. For close ended schemes, the limit is 10% of its Net Asset Value (NAV).

Dividend Policy of the Franklin India Smaller Companies Fund - Growth

In the scheme, the declaration of dividends may be made by the trustee at any time and at any frequency (such as annually, half-yearly, quarterly, monthly, weekly, or daily). However, the rate of dividend distribution and the regularity in payment of dividends is not guaranteed or assured by the scheme. The distribution of dividends will be dependent on the availability and adequacy of the distributable surplus. Under the Dividend Plan, the trustees may declare the dividends at any periodicity which fits the unitholders (the names that appear on the Unitholders’ register on the date of record).

The dividends will be distributed within 30 days from the date of declaration. The unitholders can opt for a particular method for the receipt of dividends. It can be chosen from the options of payment through cheque or electronic mode. The dividend will be paid in favour of the registered name of the unitholder.

Other facilities under the Franklin India Smaller Companies Fund - Growth

Franklin Templeton Asset Management (India) Pvt. Ltd. offers a number of other facilities under the Franklin India Smaller Companies Fund - Growth scheme. Some of the additional facilities that can be availed by unitholders are as follows:

• Systematic Investment Plan (SIP)
• Step Up Systematic Investment Plan (SIP)
• Pause Systematic Investment Plan (SIP)
• Systematic Investment Plan (SIP) Amount Change
• Flexi Systematic Investment Plan (Flexi SIP)
• Any Date Systematic Investment Plan (SIP)
• Systematic Transfer Plan (STP)
• Dividend Transfer Plan (DTP)
• Systematic Withdrawal Plan (SWP)

Why should you invest in the Franklin India Smaller Companies Fund - Growth?

Franklin Templeton Asset Management (India) Pvt. Ltd. is one of the largest and widely known asset management companies (AMCs) in the world. It is spread across 28 countries all over the world with more than 600 investment professionals. They have 46 research offices, 13 global trading offices, and 15 local asset management teams. It offers a wide range of products to choose from. The investment requirements of investors of every type are fulfilled by the AMC. It has a huge investor base as well. Being one of the most successful asset management companies (AMCs), it is a great option to invest in.

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