NEW DELHI: Franklin Templeton India is launching a dynamic open-ended asset allocation fund called Franklin India Balanced Advantage Fund, he said on Tuesday. The fund aims to provide long-term capital appreciation and income generation. It will do this by investing in an actively managed portfolio of equity and equity-related instruments and fixed income and money market instruments.
The product is suitable for those who wish to reduce the impact of market volatility. The offer of the new fund opens on August 16 and will close on August 30. The units will be available at Rs 10 per unit.
“This new fund is intended for investors seeking a balanced exposure to equities and debt over the long term while capitalizing on market opportunities from time to time. Along with the benefits of diversification, this formula-based approach with its built-in buy-sell discipline helps negate behavioral biases caused by the emotions of greed and fear,” said Avinash Satwalekar, President of Franklin Templeton–India. .
Global equity markets continue to be volatile amid headwinds from inflation, interest rates and ongoing political tensions, said Anand Radhakrishnan, Managing Director and Chief Investment Officer, Emerging Markets Equities, India at Franklin Templeton. Indian markets have held up much better than their counterparts in major developed and emerging markets, in dollar terms, he said. “Such bouts of market volatility can throw investors off course, causing them to make sub-optimal decisions. With this in mind, the Franklin India Balanced Advantage Fund will take a flexi-cap approach to equity allocation,” did he declare.
“We will use a combination of quantitative and qualitative factors to determine equity asset allocation. The quantitative parameter would be based on the month-end weighted average price-to-earnings (P/E) ratio and the price-to-book (P/BV) ratio of the Nifty 500 index,” said K Rajasa, Vice President and Portfolio Manager, Franklin India Balanced Advantage Fund.