Franklin India Files Draft with SEBI for Flexicap Fund

Understanding Flexicap Funds: Navigating Market Volatility

In the ever-changing landscape of the stock market, investors often seek refuge in funds that offer flexibility and adaptability. Enter Flexicap funds, the dynamic equity funds that traverse across various market capitalizations, including large-caps, mid-caps, and small-caps. These funds are particularly attractive during volatile times, as fund managers can adjust their allocations strategically, increasing exposure to large-cap stocks for stability while reducing exposure to riskier mid and small-cap stocks.

Franklin Templeton’s Move: Introducing Franklin India Multicap Fund

Against the backdrop of volatility looming over Indian markets and the uncertainty surrounding the outcome of general elections, Franklin Templeton India has made a significant move by filing a draft with the Securities and Exchange Board of India (SEBI) for the Franklin India Multicap Fund. This open-ended scheme is designed to invest across large-cap, midcap, and small-cap stocks, offering investors a diversified approach to weather market fluctuations.

Key Features of Franklin India Multicap Fund

Primary Benchmark: The fund’s primary benchmark is the Nifty 500 Multicap: 50:25:25 Total Returns Index, reflecting its diversified investment strategy across different market segments.

Portfolio Composition: Franklin India Multicap Fund predominantly invests in equity and equity-related securities across large-cap, midcap, and small-cap stocks, ensuring a balanced exposure to different market segments.

Plans & Options Offered

Growth Plan

Income Distribution cum Capital Withdrawal (IDCW) Plan (with Reinvestment and Payout Options)

Direct-Growth Plan

Direct-IDCW Plan (with Reinvestment and Payout Options)

Default Plan and Option

In the absence of specific instructions from investors, the default plan will be the Direct Plan, with the default option being Growth (or IDCW if not indicated). It’s crucial for investors to clearly indicate their preferred plan and option in the relevant space provided in the Application Form to ensure alignment with their investment goals.

Minimum Amounts & Transaction Details

Subscription: Fresh Purchase – Rs. 5,000, Additional Purchase – Rs. 1,000

Systematic Investment Plan (SIP): Rs. 500

Redemption: Rs. 1,000

Investors can subscribe, initiate SIPs, or redeem their investments in multiples of Re. 1/-, offering flexibility in managing their transactions.

Entry and Exit Load

Entry Load: In compliance with SEBI guidelines, no entry load will be charged by the Mutual Fund.

Exit Load: An exit load of 1% will be applicable if units are redeemed or switched out within one year of allotment, ensuring alignment with long-term investment objectives.

In conclusion, Franklin India Multicap Fund represents a strategic move by Franklin Templeton India to offer investors a flexible and diversified investment option amidst market uncertainties. With its dynamic allocation across different market capitalizations, this fund aims to provide stability and growth potential, catering to the evolving needs of investors in the ever-changing landscape of the stock market.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.