July 27, 2022
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Franklin Templeton Mutual Fund brings NFO after two 
years
Franklin Templeton Mutual Fund is launching a new scheme after a gap of two and a half years. The fund house has received approval from Sebi to launch a balanced advantage fund. This will be Franklin Templton’s first product offering after it faced rough weather following its decision to shut six debt schemes in 2020.
The NFO will open for subscription on August 16 and will close on August 30.
FIBAF is a dynamically-managed fund and in this new fund, the equity exposure will be maintained between 65% and 100%. At any point, if the equity allocation falls below 65%, the gross equity exposure will be maintained using equity derivatives. Debt instruments will make up for the rest.The scheme will endeavour to invest in high quality instruments with over 80% of fixed income portfolio in AAA-rated papers. This makes it suitable for investors looking for the best of both worlds.
“We will use a combination of quantitative and qualitative factors to determine the equity asset allocation. These parameters will be accorded 50% weightage each and added to arrive at the final equity allocation. ” said K Rajasa, VP & Portfolio Manager– Franklin India Balanced Advantage Fund.
Avinash Satwalekar, President, Franklin Templeton–India, said, “ This new fund is for investors looking for a balanced exposure to equity and debt over the longer term while also capitalizing on opportunities provided by the market from time to time. ”
Anand Radhakrishnan, Managing Director & Chief Investment Officer – Emerging Markets Equity – India, Franklin Templeton, said, “Global equity markets have corrected in recent months and continue to be volatile amidst multiple headwinds of inflation, interest rate and ongoing geopolitical tensions. With that in mind, Franklin India Balanced Advantage Fund will adopt a flexi-cap approach for equity allocation.
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