Franklin Templeton Mutual Fund is making some changes to 24 of their existing schemes and merging its two schemes (Franklin India Government Securities Fund (FIGSF) – composite and PF Plan into FIGSF – Long Term Plan). The changes will be effective from June 4. The re-categorisation and merger of schemes are in line with Sebi’s new rules on categorisation of mutual funds.
“If the investors do not wish to continue the systematic transactions under surviving plan (FIGSF – Long Term Plan) post-merger, the investors are required to intimate Franklin Templeton Mutual Fund in writing their unwillingness to continue the said facilities latest by 3 pm on June 1,” said a communication sent by the fund house to its investors.
Apart from the merging schemes, the fund house also made some minor changes to 24 schemes. Some of the prominent schemes that have witnessed these changes are: Franklin India Prima Plus, Franklin India Bluechip Fund, Franklin India Flexi Cap Fund and Franklin India Smaller Companies Fund, etc.
Franklin India Prima Plus: This scheme has been renamed Franklin India Equity Fund. It will now invest in a diversified equity portfolio of large, midcap, and smallcap stocks. The scheme was a diversified equity scheme investing predominantly in largecap stocks with allocation to midcaps and smallcaps.
Franklin India Balanced Fund: This scheme has been renamed Franklin India Equity Hybrid Fund. This scheme will invest predominantly in equity and equity-related instruments (65-80 per cent) with some allocation to debt (20-35 per cent).
Franklin India Bluechip Fund: There is no change in the name and it continues to be a largecap scheme. However, the scheme will now track Nifty 100 index, instead of S&P BSE Sensex and will invest 80-100 per cent in largecap stocks.
Franklin India Flexi Cap Fund: The scheme has been renamed Franklin India Equity Advantage Fund. It will become a large and midcap fund, investing 35-65 per cent in both largecap and midcap stocks.
Franklin India Prima Fund: The scheme remains a midcap fund, but the benchmark will change from Nifty 500 and Nifty Free Float Midcap 100 to Nifty Midcap 150.
Franklin India Smaller Companies Fund: The scheme will become a smallcap fund. It used to be a diversified equity fund, investing in small and midcap stocks. It will invest predominantly, at least 65 per cent, in smallcap stocks.
Templeton India Equity Income Fund: This diversified equity scheme will be categorised under the newly formed dividend yield category. The scheme will now invest in dividend yielding stocks.
Templeton India Growth Fund: It will be renamed Templeton India Value Fund. This scheme will remain an open-ended equity scheme but will follow a value investing strategy.
Franklin India High Growth Companies Fund: This scheme is renamed Franklin India Focused Equity Fund. This will remain a diversified equity fund that invests in Indian companies/sectors with high growth rates or potential. However, it will only invest in a maximum of 30 stocks.
Franklin India Technology Fund: There is only a change in allocation of this scheme. The scheme will be mandated to invest at least 80 per cent of its assets in equities instruments of technology companies.
Franklin Build India Fund: This scheme will be categorised under the infrastructure sector funds. The scheme will track S&P BSE India Infrastructure Index in the place of Nifty 500. The scheme will be mandated to invest a minimum of 80 per cent of its assets in infrastructure-related stocks.
Franklin Asian Equity Fund: This diversified equity scheme will continue following Asian (excluding Japan) equity theme. The mandated minimum equity allocation in international stocks will increase from 70 per cent to 80 per cent.
Franklin India Opportunities Fund: This diversified equity scheme will invest in opportunities presented by special situations in Indian economy like corporate restructuring, government policy and/or regulatory changes, in companies going through temporary unique challenges and other similar instances. The benchmark of this scheme will change from S&P BSE 200 to Nifty 500.
Franklin India Ultra Short Bond Fund: This scheme will move from the income fund category to the ultra-short term debt scheme category. The scheme will be mandated to invest in instruments such that the Macaulay duration of the portfolio is between three months to six months. Currently, the scheme invests in debt securities with maturity up to 12 months.
Franklin India Low Duration Fund: The scheme will invest in instruments such that the Macaulay duration of the portfolio is between 6 months to 12 months.
Franklin India Savings Plus Fund: This scheme will be renamed Franklin India Savings Fund. It will invest 100 per cent of its assets in money market instruments.
Franklin India Income Opportunities Fund: This scheme will become a medium duration fund, investing in instruments such that the Macaulay duration of the portfolio is between three to four years.
Franklin India Income Builder Account: This scheme has been renamed Franklin India Corporate Debt Fund. This income fund will now fall under the corporate bond fund category.
Franklin India Corporate Bond Opportunities Fund: This scheme will be renamed Franklin India Credit Risk Fund. This scheme will fall in the credit risk category of debt schemes and will invest in AA and below rated corporate bonds (excluding AA+ rated corporate bonds).
Franklin India Banking and PSU Debt Fund: The scheme will now be banking and PSU fund, predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds.
Franklin India Government Securities Fund – Long Term Plan: This scheme is being renamed Franklin India Government Securities Fund. The scheme will remain a gilt fund, investing in government securities across maturity.
Franklin India Cash Management Account: This scheme also has a new name. It will be called Franklin India Floating Rate Fund. This scheme will be re-categorised from a liquid fund to a floater fund, predominantly investing in floating rate instruments.
Franklin India Monthly Income Plan: The new name of this scheme would be Franklin India Debt Hybrid Fund. This scheme will be re-categorised as a hybrid scheme investing predominantly in debt instruments.