New Delhi, May 29
Franklin Templeton Investments (India), one of the largest fund houses* in the country, is launching a new open end diversified equity fund called Franklin India High Growth Companies Fund (FIHGCF). The fund seeks to provide capital appreciation through investments in Indian companies / sectors with high growth rates. The New Fund Offer period will be from May 31, 2007 to June 29, 2007 during which, units will be available at Rs.10 per unit (plus applicable load).
On the rationale for launching the new fund, Mr. Vivek Kudva, President, Franklin Templeton India said, “The changing investment landscape in India along with a growing recognition of the long term potential has led to increased interest for equities amongst Indian investors. At the same time, a large number of investors are looking for an equity product that focuses on achieving capital appreciation through fast growing Indian companies. To cater to this need, we are now launching Franklin India High Growth Companies Fund. It will adopt a growth style of investing unlike other Franklin equity funds, which follow a blended investment style.”
Elaborating further, he said “In a rapidly growing economy like India, a growth style has performed better and is likely to sustain this performance (albeit with higher volatility) if the economy continues to grow at a rapid pace. Overall, this fund will help us in broad basing our equity product offerings and cater to the growing segment of equity investors looking for a high growth equity offering in their portfolio”
Speaking about the fund’s strategy, Sivasubramanian KN, Senior Portfolio Manager, added, “The economic and corporate fundamentals continue to be strong and India is projected to become one of the largest economies in the world. Given that Indian companies (enjoying various competitive advantages) are growing at a rapid pace and have the potential to grow at above-average rates in the years to come, FIHGCF’s growth-focussed strategy of investing in such stocks will help investors capture the growth potential of corporate India in a comprehensive manner.
The fund’s focus will be on companies offering the best trade-off between growth, risk and valuation. We will be looking for sustainable competitive advantages - proprietary intellectual property, strong management, distribution/cost advantages or entry barriers specific to the respective sector. The fund will be managed based on a mix of top-down (macro analysis to identify sectors) and bottom up approach (micro analysis to pick stocks within these sectors).”
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