New Delhi: Franklin Templeton Investments (India), is launching a new open end diversified equity fund called Franklin India High Growth Companies Fund (FIHGCF).
The fund seeks to provide capital appreciation through investments in Indian companies and sectors with high growth rates. The New Fund Offer period will be from May 31, 2007 to June 29, 2007 during which, units will be available at Rs 10 per unit (plus applicable load).
On the rationale for launching the new fund, Mr Vivek Kudva, President, Franklin Templeton India said, “The changing investment landscape in India along with a growing recognition of long term potential has led to increased interest for equities amongst Indian investors.
A large number of investors are looking for an equity product that focuses on achieving capital appreciation through fast growing Indian companies. The fund will adopt a growth style of investing unlike other Franklin equity funds, which follow a blended investment style.
“In a rapidly growing economy like India, a growth style has performed better and is likely to sustain this performance (albeit with higher volatility) if the economy continues to grow at a rapid pace.
Speaking about the fund’s strategy, Sivasubramanian KN, Senior Portfolio Manager, added, “The economic and corporate fundamentals continue to be strong and India is projected to become one of the largest economies in the world. Given that Indian companies (enjoying various competitive advantages) are growing at a rapid pace and have the potential to grow at above-average rates in the years to come, FIHGCF’s growth-focussed strategy of investing in such stocks will help investors capture the growth potential of corporate India in a comprehensive manner.