Franklin India Taxshield - Dividend

Franklin India Taxshield(D)
Dividend Yearly
3.75  (As on 28-01-2019)
Category
Equity - Tax Saving
52-week NAV high
582.93  (As on 03-06-2019)
52-week NAV low
507.60  (As on 26-10-2018)
Expense
1.92%  (As on 31-08-2019)

Performance

1 mnth 3 mnth 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr
Fund Returns 1.58 -5.59 -4.55 -7.62 -0.02 4.35 6.48 8.18 -
Scheme Details
Fund Type
Open Ended
Investment Plan
Dividend
Bonus
NA
Launch Date
Apr 10, 1999
Last Dividend
3.75
Minimum Investment
500

Franklin India Taxshield - Dividend

The Indian branch of the Franklin Templeton Investments group was set up in the year 1996 under the name Templeton Asset Management India Pvt. Ltd. The company started its mutual fund business in September 1996 with the launch of the Templeton India Growth Fund. Franklin Templeton has its major branches in Mumbai, Chennai, and Hyderabad.

Franklin India offers an array of mutual funds such as equity funds, hybrid funds, liquid funds, ELSS, fixed income funds, etc. The Franklin India Taxshield – Dividend scheme is an ELSS scheme that helps investors save tax. The scheme offers two broad options to choose from – Growth and Dividend. The Dividend plan type ensures that investors receive payouts from the scheme’s corpus through dividends. This plan is ideal for individuals who are looking for plans that provide a regular source of income.

Investment Objective of Franklin India Taxshield - Dividend

The objective of the scheme is to provide regular returns by making investments in fixed income instruments with a maximum 25% exposure in equities.

Key Features of Franklin India Taxshield - Dividend

Given below are the basic features offered by the scheme:

Type of fund

Open-ended hybrid scheme that basically invests in debt instruments

Plans available

  • Growth
  • Dividend

Default option: Growth

Options under each plan

  • Growth: Growth Plan, Monthly Dividend Plan, Quarterly Dividend Plan
  • Dividend: Payout option, Reinvestment option

Risk

Moderately high

Systematic Investment Plan

Available

Systematic Transfer Plan

Available

Systematic Withdrawal Plan

Available

Investment Amount for Franklin India Taxshield - Dividend

Certain limitations have been mentioned with respect to the investment amounts of the scheme:

Minimum application amount

Rs.10,000

Minimum additional investment

Rs.1,000

Minimum installment for Systematic Investment Plan (SIP)

Rs.500

Entry Load

NA

Exit Load

Within one year of allotment of units:

  • Nil for redemption on 10% of units
  • 1% for redemption of more than 10% of units

After one year of allotment of units

Nil

The minimum balance that is mandatory to be maintained in the account is Re.1.

Asset Allocation for Franklin India Taxshield - Dividend

Under normal market conditions, the allocations of the respective instruments and their risk profiles are:

Instruments

Allocations (Percentage of total assets)

Risk Profile

Equity and equity-related securities

10% - 25%

Medium to high

Fixed income securities

75% - 90%

Low to medium

Who can invest in Franklin India Taxshield - Dividend

The entities that are permitted to avail the Franklin India Taxshield - Dividend scheme are:

  • Resident Indian adults – as single holders or joint holders (not more than three joint holders)
  • Companies, partnership firms, sole proprietorship firms, limited liability partnerships, corporate bodies, and public sector undertakings
  • Parents or guardians on behalf of minors
  • Trusts, clubs, societies, boards, and associations permitted to invest in mutual funds such as charitable trusts, religious trusts, wakf boards, co-operative societies, endowments, etc.
  • Hindu Undivided Family
  • Overseas Citizens of India, Non-Resident Indians, Foreign Institutional Investors, and Foreign Portfolio Investors
  • Investment institutions, financial institutions, and banks
  • Army, Navy, Para-military, Air Force, and other such organisations
  • Alternative investment funds and other mutual fund schemes
  • Other individuals, bodies, associations, or other such entities that the AMC permits

NAV Disclosure and Benchmark for Franklin India Taxshield - Dividend

NAV: The NAV is calculated using the market value of the scheme’s net assets and the number of units on the day of computation of NAV. The liabilities of the scheme are deducted from the sum of the net assets and accumulated interest, and then the resulting figure is divided by the number of units outstanding the same day. The NAV is calculated on every working day and is published in at least 2 widely-distributed newspapers.

Liquidity: Repurchase and redemption, under the scheme, is allowed on all working days. Once a valid redemption request is made to the mutual fund, the proceeds are dispatched to the unitholders within 10 days from the day the redemption request is received at the Official Points of Acceptance of Transactions.

Benchmark Index: The benchmark chosen for this scheme is CRISIL Hybrid 85+15 – Conservative Index.

Fund Managers of Franklin India Taxshield - Dividend

The fund managers of the scheme are Sachin Padwal-Desai, Umesh Sharma, Lakshmikanth Reddy, and Srikesh Nair.

Sachin Padwal-Desai, Vice President and Portfolio Manager for Fixed Income in Franklin India, has 21 years of experience and manages a total of 10 schemes. He has been managing Franklin India Taxshield – Dividend scheme for 7.98 years as on 27 June 2018.

Umesh Sharma, who is also the Vice President and Portfolio Manager for Fixed Income in Franklin India, has completed 18 years of experience in the industry and currently manages 8 schemes in the AMC. He has also been managing Franklin India Taxshield – Dividend scheme for 7.98 years now.

Lakshmikanth Reddy, Vice President and Portfolio Manager for Franklin Equity, has a total experience of 7 years in the capital industry. He is a dedicated fund manager for foreign securities investment and also manages 2 other funds. He has been managing Franklin India Taxshield – Dividend scheme for 2.15 years as on 27 June 2018.

Srikesh Nair, the Senior Manager and Research Associate for Franklin Equity, also has 7 years of experience and is a dedicated fund manager for foreign securities investment apart from being a fund manager for 2 other funds. He has managed the Franklin India Taxshield – Dividend scheme for 2.58 years as on 27 June 2018.

Investment Restrictions of Franklin India Taxshield - Dividend

The Franklin India Taxshield - Dividend scheme has certain restrictions. A few of the restrictions are mentioned below:

  • The scheme will make investments using the scheme’s corpus only in transferable securities.
  • Franklin Templeton’s hold on the voting rights of a company is limited to 10%.
  • In case of purchases, the scheme will receive the delivery of securities and in case of sale, the scheme will sell the relevant securities as long as the scheme follows the guidelines given by SEBI with regard to short selling of securities.
  • The scheme does not allow unitholders to take loans from the scheme’s corpus.
  • The mutual fund will buy and sell securities under the name of the mutual fund on account of the scheme concerned with respect to long-term investment instruments.
  • Investments can be made in any other scheme that has an investment objective on the same lines as the existing scheme, provided that the average investment made in all the schemes of an AMC does not cross the 5% of NAV mark.
  • Investments cannot be made in Fund of Funds schemes.

Dividend Policy of Franklin India Taxshield - Dividend

The trustees of the scheme will declare dividends from the distributable surplus of the scheme’s corpus from time to time. The dividends may be paid on a yearly basis, a half-yearly basis, weekly basis, etc. but solely depend on the corpus available under the scheme. The frequency of dividend payment and the rate of dividend payment are not guaranteed. Also, the trustee does not assure the unitholders that the dividends will be paid on a regular basis. But once the dividend is publicly declared by the trustees, it is dispatched to the individuals within 30 days from the date of declaration.

Distribution of dividends

The dividends will be paid net of taxes through cheque or electronic mode, whichever has been opted for by the unitholder. The cheque is issued in favour of the name of the unitholder in case of a single unitholder or in favour of the first name on the application form in case of joint holding of the scheme. The investors can choose to reinvest the dividend received at the former dividend NAV.

Other facilities under Franklin India Taxshield - Dividend

The AMC offers certain special facilities for the unitholders. Some of them are:

  • Step-up SIP: Individuals who wish to increase their investment amount at regular intervals may do so using the Step-up SIP facility wherein the unitholder can choose to increase his/her installment amount by a certain predetermined percentage or amount at specific intervals. This facility is available for quarterly and monthly SIPs.
  • Flexibility of instalment payment for SIP: The investor has the option to increase or decrease the installment amount payable towards the SIP under the Flexi SIP facility. A person is required to make a Flexi SIP request 20 days in advance to avail the facility. The facility can be availed for a specific quarter or month when an individual suffers instability in finances or has a surplus that he/she would like to invest.
  • Switch SIPs: An investor can switch from one scheme to another or from one plan to another under Franklin India. For the switch, the units of the scheme are redeemed and the proceeds are invested in a new scheme at the NAV applicable at the time.
  • SMS-based transactions: Transactions for the scheme can be carried out conveniently through SMS by the unitholders. Individuals who wish to avail this facility are required to submit an SMS transaction registration form. Transactions can be initiated by sending SMS through the registered phone number with fixed templates as fixed by the AMC.

Why you should invest in Franklin India Taxshield - Dividend

The Franklin India Taxshield – Dividend scheme provides tax benefits to investors under section 80C of the Income Tax Act, 1961. According to the act, individuals and Hindu Undivided Families (HUFs) are allowed tax deductions for investments up to Rs.1.5 lakh. The scheme aims to provide its investors with capital appreciation over a long period of time by investing in several companies of different sectors and sizes. The AMC also has many experts who have vast experience in the capital industry who will be able to help investors understand their needs and aid them to make efficient investments.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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