Franklin India Taxshield (D)-Direct Plan

Franklin Templeton India is one of the most reputed mutual fund houses in India and offers a variety of mutual fund schemes to its customers. The company was set up in 1996 and since then the company has seen its business take giant strides towards success.

Franklin India Taxshield - Direct - Dividend is an open-ended equity linked saving scheme which aims to provide the investors with medium to long term capital growth. The scheme also has a statutory lock of three years and provides tax benefits to its investors as well. Under this scheme an investor can directly invest and is not required to pay any distribution charges. This scheme is ideal for those who are looking for a steady income flow.

Investment Objective of Franklin India Taxshield - Direct - Dividend

The investment objective of Franklin India Taxshield - Direct - Dividend scheme is to help the investors generate medium to long term growth and help them avail tax benefits as well.

Key Features of Franklin India Taxshield - Direct - Dividend

Investment Amount for Franklin India Taxshield - Direct - Dividend

Asset Allocation for Franklin India Taxshield - Direct - Dividend

Who can invest in Franklin India Taxshield - Direct - Dividend

The following entities can invest in the Franklin India Taxshield - Direct - Dividend scheme:

• Residents of India either as a single holder or on a joint basis
• Minor through a parent/s or a guardian
• Corporate bodies/Companies/ Public Sector undertakings registered in India
• Banks, Investment Institutions, and Financial Institutions
• Religious, Charitable, and similar type of Trusts registered in India
• Hindu Undivided Families (HUF)
• Endowments or Wakf Boards/ Societies/Co-operative societies/ Associations of Person or Body of individuals authorised to invest in units of mutual funds
• Army, Navy, Air Force, paramilitary funds and eligible bodies
• Partnership Firms, Limited Liability Partnerships (LLP), and Sole Proprietorship
• Institutions, individuals, and corporate bodies in conformity with SEBI rules and guidelines and permitted by the AMC may invest in the units of mutual funds
• Mutual Funds and Investment Funds can also invest in a scheme of a mutual fund, subject to SEBI rules and guidelines
• Institutions, Associations, and Other bodies permitted to invest in the units of mutual funds
• Industrial and scientific research organisations
• Non-resident Indian (NRI)/Overseas Citizens of India (OCI) on a full repatriation or non-repatriation basis
• Foreign Institutional Investors (FIIs) registered with SEBI on a full repatriation basis

*Note: The above-mentioned list is indicative. Prospective investors are advised to consult with their financial advisors to check if this scheme is suitable to them.

NAV Disclosure and Benchmark for Franklin India Taxshield - Direct - Dividend

The net asset value or NAV of a scheme can be calculated by dividing the total number of assets by the total number of outstanding units. The NAV for this scheme is calculated for every business day and published on www.franklintempletonindia.com, the official website of the Franklin Templeton India Mutual Fund and on www.amfiindia.com, the official website of the Association of Mutual Funds of India.

The scheme portfolios will be disclosed by the Mutual Fund on the official websites of both the Franklin Templeton India, and the Association of Mutual Funds of India on the last day of the month/last day of every bi-annual year at the end of March and September.The Fund in accordance to the guidelines laid out by SEBI will also disclose the half-yearly and the annual results on its official website. The Benchmark Index for this scheme is Nifty 500.

Franklin India Taxshield - Direct - Dividend - Fund Manager

The Fund Managers for the Franklin India Taxshield - Direct - Dividend scheme are Mr. Lakshmikanth Reddy and Mr. R. Janakiraman.

Investment restrictions of Franklin India Taxshield - Direct - Dividend

Some of the restrictions specific to the Franklin India Taxshield - Direct - Dividend scheme are:

• The investments made in the securities via the scheme corpus can only be in the transferable securities under Regulation 43 of Chapter VI of SEBI (Mutual Funds) Regulations, 1996.
• The mutual fund will not advance any loan for any purpose whatsoever.
• The investor cannot make an investment in any Fund of Funds schemes.
• The Mutual Fund under all its schemes will not own more than 10% of any company’s voting rights.
• The scheme may pool their investment in another scheme under the same mutual fund or any other asset management company’s plan without charging any fee for it, provided that all the investments made by all the schemes under the same mutual fund or schemes under other mutual funds do not exceed more than 5% of the NAV of the mutual fund.
• Not more than 10% of its net asset value shall be invested by the scheme in debt instruments including money market instruments and non-money market instruments issued by a single issuer.
• Not more than 5% of the NAV can be invested by the scheme in unlisted equity and equity-related instruments of other companies.
• Long term securities, regardless of any maturity period as applicable for debt instruments will attract the investment restrictions,
• Not more than 10% of the net asset value shall be invested by the scheme in unrated debt instruments. The investment must not exceed more than 25% of the net asset value of the scheme.
• The scheme from time to time, as per the guidelines laid down by SEBI/RBI/Central Government of India, can consider investing in financial market instruments

*Note: A full list of the investment restrictions for SBI Magnum Midcap Fund can be found in the Scheme Information Document.

Dividend Policy of Franklin India Taxshield - Direct - Dividend

The Asset Management Company or the Trustee can declare the dividends at any point in time it deems appropriate. The unitholders will be provided with no guarantee or assurance by the company whatsoever regarding the rate of dividend distribution and the dividend that will be regularly paid to the investors.

The scheme also has full rights to suspend the sales of units for a period of time it finds fit to be appropriate before the record date so as to ensure proper processing.

The dividends will be distributed within a month of the declaration of the dividend and can be paid through cheque or electronic mode as per the mode chosen by the unitholder.

The procedure and manner of payment of dividend shall be in line with the circulars and guidelines by SEBI.

Other Facilities under Franklin India Taxshield - Direct - Dividend

Some of the facilities that an investor can avail under the Franklin India Taxshield - Direct - Dividend scheme are:

• Step-up SIP: Under this facility, investors availing the SIP option can opt to increase the SIP amount at a certain period of time. The investors can thus have the flexibility to invest a higher amount during the tenure of their SIP.
• Pause SIP: Investors who have availed this facility can pause their SIP at point in time. The notice for the pausing of SIP must be submitted at least 20 days prior to the next date of SIP.
• New SIP: Investors availing this facility can choose any date of a month for the installments of their SIP. In case the date chosen falls on a holiday, then the next business day will be considered to be the new date for the installments of the SIP. If no dates are provided, then the 10th day of the month will be considered as the default date for the installments of the SIP.
• SIP Amount Change facility: Those who are availing this facility can opt to change the SIP amount without having to cancel the ongoing SIP.
• Flexi SIP facility: If an investor is having a cash crunch or has surplus of cash, then he/she may avail this facility where he/she can alter the installment amount for a single month or a quarter.
• Systematic Transfer Plan (STP): Investors availing this facility can choose to transfer their investments to another Franklin Templeton India scheme on a weekly, monthly, quarterly, half-yearly, or on a yearly basis.

*Note: A full list of special facilities that are offered to unitholders can be found in the Scheme Information Document.

Why should you invest in Franklin India Taxshield - Direct - Dividend

Franklin India Taxshield - Direct - Dividend scheme is an open-ended equity linked saving scheme which aims to provide medium to long term capital growth to its investors and comes with a statutory three-year lock-in period. This scheme is ideal for those who wish to invest directly and have a regular flow of income for themselves.

Apart from that, the scheme also provides its investors with various facilities such as the Step-up SIP facility where an investor can increase the SIP amount at a certain period of time so as to enhance his/her flexibility of investing higher amounts. A person can also pause the SIP and also change the SIP amount without having to cancel the SIP. The New SIP facility also provides an investor with the option of choosing the date of a month for the installments of SIP. Similarly, if the investor has a cas crunch or has surplus amount of money, he/she can avail the Flexi SIP facility where the SIP amount can be changed for a month or on a quarterly basis. One can also avail the Systematic Transfer Plan (STP) facility where he/she can transfer the investment from the existing scheme to another Franklin Templeton India scheme. Those who have invested or wish to invest in this scheme will also get to enjoy various tax benefits as well under Section 80C of the Income Tax Act, 1961.

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