Franklin Templeton began its association with India more than 2 decades ago when they started to expand to markets in other parts of the world. The first Franklin Templeton office in India was first set up in the year 1996 with the name Templeton Asset Management India Private Limited. The company has since then grown at a fairly steady pace.
Investment Objective of Franklin India Smaller Companies Fund
The investment objective of this scheme is to provide long term capital appreciation by investing mainly in small cap companies.
Key Features of Franklin India Smaller Companies Fund
Some of the important features of Franklin India Smaller Companies have been listed below:
|Type of fund||Open-ended equity scheme|
|Plans available||Regular and Direct|
|Options under each plan||Growth Plan Dividend Plan|
|Systematic Investment Plan||Available|
|Systematic Transfer Plan||Available|
|Systematic Withdrawal Plan||Available|
Investment Amount for Franklin India Smaller Companies Fund
|Minimum application amount||Rs.5,000|
|Minimum additional investment||Rs.1,000|
|Minimum installment for Systematic Investment Plan (SIP)||Rs.500|
|Entry Load||Not Applicable|
|Exit Load||1% if the units are switched out or redeemed before the completion of 365 days|
Asset Allocation of Franklin India Smaller Companies Fund
|Instruments||Risk Profile||% of net assets|
|Equities and Equity Linked Instruments of smaller companies||Medium to High||65 - 100%|
|Equities and Equity Linked instruments of other companies||Medium to High||0 - 35%|
|Debt / Money Market Instruments / Cash||Low to Medium||0 - 35%|
Who can invest in Franklin India Smaller Companies Fund
The following entities can invest in Franklin India Smaller Companies Fund:
- Adult individuals who are residents of India (either singly or jointly which does not exceed three members).
- Parents and guardians who are investing on behalf of minors.
- Public Sector Undertakings, Companies and Domestic Corporate Bodies that have been registered in India.
- Financial institutions, investment institutions, and banks.
- Partnership firms, Limited Liability Partnerships (LLPs), and sole proprietorship.
- Non-Resident Indians (NRI) and Overseas Citizen of India (OCI).
- Foreign institutional investors on full repatriation basis.
- Hindu Undivided Family (HUF)
- Air Force, Navy, Army and other institutions that are eligible.
- Industrial research or scientific organisations.
- Institutions and bodies that have the authority to invest in mutual funds.
- Alternative Investment Funds and Mutual Fund Schemes can also invest in Schemes, subject to SEBI regulations at times.
NAV Disclosure and Benchmark for Franklin India Smaller Companies Fund
The calculation of the NAV will be done every business day and can be viewed on www.amfiindia.com and www.franklintempletoninda.com. It is generally calculated up to 4 decimal points and makes use of the standard rounding criteria. Full portfolio disclosure will also be done by the company twice every year. This will be done as per SEBI regulations.
The benchmark of the Franklin India Smaller Companies Fund is Nifty Smallcap 250.
Franklin India Smaller Companies Fund Manager
R Janakiraman, Srikesh Nair, and Hari Shyamsunder are the fund managers of this fund.
Investment Restrictions of Franklin India Smaller Companies Fund
The following are some of the restrictions that are applicable for the Franklin India Smaller Companies Fund:
- The securities can be transferred or purchased using the fund name if the investments are planned to be long term in nature.
- Loans shall not be advanced for any reason by the mutual funds.
- More than 10% of the voting rights of any company will not be owned by Franklin Templeton Mutual Fund under any of its schemes.
- More than 10% of the net assets will not be invested in any company’s equity or equity related instruments.
- Up to 5% can be invested by the scheme in unlisted equity and equity related instruments.
- More than 10% of the NAV of the scheme may not be invested in unrated debt instruments that have been issued by one issuer. More than 25% of the NAV cannot be invested and all these investments have to be done only after prior approval from the AMC Board and the Trustee.
- Other financial investments may be done by the scheme from time to time. This will be in accordance to the SEBI guidelines from time to time.
- Debentures will attract investment restrictions that are applicable for debt instruments under Clause 1 and 1A of the SEBI Regulations.
- None of the investments may be made in Fund of Funds schemes.
- Transfer from one scheme to another within Franklin Templeton Mutual Fund shall be done as follows:
- The securities that are being transferred should be compliant with the investment objective of a new scheme to which the transfer is made.
- These transfers are generally made at the current market prices for the quoted instruments.
- Investments will not be made in:
- Listed securities of companies of the sponsor that exceed 25% of the net assets.
- Unlisted securities of a group company or an associate.
- Securities issued through private placement by a group company or associate of the sponsor.
Other facilities under Franklin India Smaller Companies Fund
Some of the special facilities available under Franklin India Smaller Companies Fund have been listed below:
- Investors have the option to switch from Franklin Templeton fund to another, but this will be subject to restrictions. There is also an option to switch in the same scheme from one plan to another (from Growth to Dividend plan and vice versa) at the NAV applicable at that time. This is however dependent on certain conditions, which have been listed below:
- In either of the plans or schemes, there is no book closure.
- The amount that has to be exchanged is higher or equal to the minimum investment amount in order to open an account in the scheme to which you wish to switch to.
- The investment you are looking to exchange is not under a lock-in period.
- The units of the plan will be redeemed at the NAV that is applicable and all the proceeds will be invested in the plan you wish to switch your funds to at the NAV at that time.
Why should you invest in Franklin India Smaller Companies Fund
The main aim of Franklin Templeton is to ensure they have the trust of their clients and business partners by maintaining very good business relationships. They offer high quality investments for the different needs of customers and provide great service to their customers.
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