Franklin Templeton Investments India launched a new open-end equity fund, the Franklin Build India Fund (FBIF), on July 8, 2009.
Investors can subscribe to the Franklin Build India Fund from July 10 to August 8, 2009. The fund invests in companies operating in various sectors that have the potential to strengthen the Indian economy.
Franklin Templeton India’s president, Harshendu Bindal, affirmed that the move aims to provide customers with more investing opportunities keeping in mind the Indian economy. “The Indian economy has exhibited resilience amidst the global weakness witnessed over the last year,” he said.
“However, we need to enhance the key building blocks of the economy to sustain and enhance economic growth rates. Increasing investments in areas such as physical & social infrastructure, resources, financial services, and agriculture will benefit a plethora of companies across sectors,” he further added.
The minimum investment for the fund would be Rs 5,000 and in multiples of Re 1 thereafter. The fund would target investors who are looking for medium-to-long-term investments, Bindal said.
The fund will allocate around 70 to 100 per cent of the assets in equity-linked instruments and equities. The rest 30 per cent will go in debt securities and money market instruments.
Under the Franklin Templeton Build India Fund scheme, units will be available for Rs 10 per units along with applicable load.
Investors will have to shell out an entry load of 2.25 percent for this scheme.
Franklin Build India Fund gives investors a single point access to a portfolio of companies in order to help them make superior risk-adjusted returns over a long period of time, Bindal said.