Franklin Templeton launches Equity Savings Fund
MUMBAI: Franklin Templeton Investments,is launching an open-ended scheme called Franklin India Equity Savings Fund (FIESF).
The fund seeks to generate income and capital appreciation over the medium to long-term by investing in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with the balance exposure in debt and money market instruments.
FIESF will seek to employ a three-pronged investment approach by investing in equities following a diversified multi-cap strategy, arbitrage to reduce volatility by hedging through equity derivatives, and fixed income to help generate steady income by following a combination of accrual and duration strategies.
The New Fund Offer will be open from August 3, 2018 to August 17, 2018 during which units will be available at Rs.10 per unit.
Speaking about the rationale for launching the fund, Mr. Sanjay Sapre, President, Franklin Templeton Investments - India said, “Investors today are challenged with increased market volatility, a low interest rate environment, and tax inefficiency of debt funds over the short-to-medium time horizon (1-3 years).
They are looking for actively-managed investment products employing strategies that can deliver returns with lower volatility while providing better post tax returns. We believe FIESF is an ideal solution to meet the needs of such investors with a moderate to high risk appetite. The fund is positioned between Conservative Hybrid and Balanced Advantage Funds and is suitable for investors with an investment horizon of 1 year and above.”
The fund seeks to generate income and capital appreciation over the medium to long-term by investing in equity and equity related securities including the use of equity derivatives strategies and arbitrage opportunities with the balance exposure in debt and money market instruments.
FIESF will seek to employ a three-pronged investment approach by investing in equities following a diversified multi-cap strategy, arbitrage to reduce volatility by hedging through equity derivatives, and fixed income to help generate steady income by following a combination of accrual and duration strategies.
The New Fund Offer will be open from August 3, 2018 to August 17, 2018 during which units will be available at Rs.10 per unit.
Speaking about the rationale for launching the fund, Mr. Sanjay Sapre, President, Franklin Templeton Investments - India said, “Investors today are challenged with increased market volatility, a low interest rate environment, and tax inefficiency of debt funds over the short-to-medium time horizon (1-3 years).
They are looking for actively-managed investment products employing strategies that can deliver returns with lower volatility while providing better post tax returns. We believe FIESF is an ideal solution to meet the needs of such investors with a moderate to high risk appetite. The fund is positioned between Conservative Hybrid and Balanced Advantage Funds and is suitable for investors with an investment horizon of 1 year and above.”