Thursday, August 6, 2009

FRANKLIN BUILD INDIA FUND - MERITS ATTENTION

AMC TRACK RECORD PROVIDES COMFORT

Srikanth Shankar Matrubai

Franklin Templeton Investment India has launched Franklin Build India Fund, an open-ended equity scheme. The scheme will invest in stocks of companies engaged either directly or indirectly in infrastructure-related activities.

Franklin Templeton has launched a New Fund after a long time.






THE OFFER :

The minimum investment amount under the fund is Rs 5,000 . The scheme will charge an entry load of 2.25 per cent for investment of less than Rs 5 crore. An exit load of 1 per cent will be levied for investments less than Rs 5 crore if the same is redeemed within a year. The scheme will be benchmarked against S&P CNX 500. The NFO will close on August 8.



Finally, Franklin Templeton too has finally fallen to the charm of the "infrastructure" tag after resisting all these years.
Infrastructure as a theme covers almost all Sectors like banking and finance, Construction, Real Estate, Cement, etc.
and Franklin Build India Fund has a wider scope than the recently launched Reliance Infrastructure Fund.

COMMENTS AND RECOMMENDATION :
The Scheme does sound thematic in nature but is more like a Diversified Equity Fund because of its Huge Coverage of Sectors and thus merits attention.
Fund Managers Anand Radhakrishnan & Roshni jain have had a good track record and provide comfort.
The UPA Govt's positive emphasis on Infrastructure will ensure good times for companies in these sector and the fund should be able to cash in on this.
Investors willing with a horizon of 3 years can consider investing in the Fund, especially through SIP.
Though there are about 14 Funds in the Infrasturcture space, Franklin's track record and the growth potential of the Infrastructure sector should work in the favour of the Franklin Build India fund.
INVEST.






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