Sunday, March 23, 2014

FT India Dynamic PE Ratio Fund of Funds - Change in Asset Allocation

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Franklin Templeton Mutual Fund proposed a change in the asset allocation pattern of FT India Dynamic PE Ratio Fund of Funds w.e.f. April 23, 2014 to allow greater flexibility in managing volatility of interest rates.

 

Existing Asset Allocation:
The equity component of the fund is invested in units of Franklin India Bluechip Fund and the debt component in Templeton India Income Fund.

 

Proposed Asset Allocation:


Debt Component:

 

The fund shall primarily allocate its debt component in Templeton India Short Term Income Plan. In case the allocation reaches 20% of the corpus of Short Term Income Plan, then the fund shall allocate its debt component in Templeton India Income Opportunities Fund. In case the allocation of FT India Dynamic PE Ratio Fund of Funds reaches 20% of the corpus of both these funds, then fresh subscription/switches into this fund would be suspended.

 

Equity Component:

 

The fund shall primarily allocate its equity component in Franklin India Bluechip Fund. In case the allocation reaches 20% of the corpus of Franklin India Bluechip, then further equity investments will be made in Franklin India Prima Plus.

 

In case the allocation of FT India Dynamic PE Ratio Fund of Funds reaches 20% of the corpus of both Bluechip and Prima Plus, then fresh subscription/switches into this fund would be suspended.

 

Fresh subscription/switches into FT India Dynamic PE Ratio Fund of Funds would be reopened subsequent to exposure falling less than 20% of the corpus of anyone of the underlying debt schemes and anyone of the underlying equity scheme.

It may be noted that the various PE ratio bands and the respective equity and debt allocation proposed under normal circumstances remain same as earlier.

The investors who do not want to continue in this scheme subsequent to the above change have been given an option to exit without any load. The period of no load exit offer is valid from March 24, 2014 to April 22, 2014.

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