Skip to main content

Franklin Templeton Mutual Fund

Franklin Templeton Mutual Fund has fallen well short of most investors' expectations, but it would be premature to write it off now.All through the bull run they cast their lot with companies boasting of sound balance sheets and free cash flows. By and large, being a conservative fund house, they steered clear of capital goods manufacturers and real estate companies and stuck to strong fundamentals. Naturally, they were penalised for it in terms of returns as the market's attention was elsewhere.

When one looks at the current market decline, their relative performance certainly does impress when compared to its peers. Its star performers, Franklin India Bluechip and Franklin India Prima Plus, also amongst India's oldest private sector funds, have managed to stay strong in the recent market debacle. Though, by their very own admission, they do have some work to do on the mid-cap fund - Franklin India Prima.

The early years of Templeton were not impressive. The acquisition of Pioneer ITI in 2002 was the best thing that happened to it. Pioneer ITI was the first AMC to launch open-ended funds in India. It started off as Kothari-Pioneer, a joint venture between the Chennai-based Shyam Kothari family (through ITI, Investment Trust of India) and the U.S.-based Pioneer Group in 1993.

In 2000, ITI was acquired by TCK Finance and in 2001 the AMC was called Pioneer ITI. Soon after, Pioneer was acquired by UniCredito Italiano, an Italian bank. In March 2002, Templeton acquired Pioneer ITI. Thanks to the acquisition, Templeton acquired some star performers and a great fund management team (the entire team was retained). Ravi Mehrotra, who came over as Pioneer ITI's CIO, was appointed as CEO of Templeton and when he quit in 2005, he was President, Franklin Templeton India.

The acquisition instantly made Franklin Templeton the largest AMC in 2002. But over the last few years, the fund house has lost significant market share. But they do not seem too perturbed by it simply because they are convinced they did the "right thing". There was no NFO mania here, neither did they go overboard with exotic products and refused to pursue short term opportunities, be it in stock selection or fund launches. Where they are rightly concerned is on the performance front where they have undoubtedly faltered.

The fund house has now put together a well structured research team of seven dedicated analysts. They have enhanced their market coverage and fine tuned their investment management processes. They are confident that in the next few years, their convictions will translate into a significant and sustained performance improvement.

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

FCCB buyback

WITH dismal share valuations causing bondholders to redeem, and not convert their foreign currency convertible bonds ( FCCBs ), which until early this year were regarded as one of the most preferred options for raising corporate debt, suddenly seem to have become millstones around the necks of issuers. It is the redemption pressure on cash-starved issuers, coupled with the need to preserve liquidity by mitigating further forex outflow, which seems to have prompted the Reserve Bank of India ( RBI ) to issue the circular permitting buyback of FCCBs. As per the circular, issuers can now buyback FCCBs under the automatic route up to any limit out of existing foreign resources or by raising fresh external commercial borrowings (ECBs,) if effected at a minimum discount of 15% on the book value. Further, FCCBs up to $50 million can be bought back with prior RBI approval out of rupee resources representing “internal accruals”, if effected at a minimum discount of 25% on the book value. I...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now