Franklin Templeton Mutual Fund
Franklin Templeton Mutual Fund
Introduction
Franklin Templeton Mutual Fund is the Indian arm of Franklin Templeton Investments, a global investment management organization founded in 1947 in New York. The company's name honors American polymath Benjamin Franklin, symbolizing prudence and long-term saving. Franklin Templeton Investments began its operations in India in 1996 under the name Templeton Asset Management India Pvt. Ltd. (its official AMC name in India), with its first fund, Templeton India Growth Fund, launched in September 1996.
Over its decades of operation in India, Franklin Templeton has built a significant presence, catering to a wide range of retail, institutional, and high-net-worth clients. It diversified its offerings across equity, fixed income, hybrid, and international fund-of-funds categories. A notable event in its Indian history was the acquisition of Pioneer ITI AMC Ltd. in 2002, which at the time made Franklin Templeton one of the largest mutual funds in India.
While known for its long-standing presence and diverse offerings, Franklin Templeton India faced a significant challenge in April 2020 when it decided to wind up six of its fixed-income schemes due to severe liquidity strains in the bond market exacerbated by the COVID-19 pandemic. This event led to heightened scrutiny and a re-evaluation of debt fund risks across the industry. Despite this, Franklin Templeton continues to operate in India with its remaining fund offerings across equity, hybrid, and certain debt categories.
Fund Managers
Franklin Templeton Mutual Fund India boasts an experienced team of fund managers for both its equity and fixed income portfolios. Key fund managers and investment leads include:
- Mr. Avinash (Avi) Satwalekar, CFA: President, Franklin Templeton Asset Management (India) Pvt. Ltd.
- Mr. Janakiraman Rengaraju, CFA: Chief Investment Officer - Equity, responsible for overseeing all local equity funds and continuing as a Portfolio Manager for several schemes.
- Mr. Rahul Goswami: Chief Investment Officer & Managing Director – Fixed Income India, overseeing the fixed income functions of locally managed and distributed debt schemes.
- Mr. Venkatesh Sanjeevi: Fund Manager (Equity).
- Mr. Rajasa Kakulavarapu: Fund Manager (Equity).
- Mr. Sandeep Manam: Senior Manager / Research Analyst, EME India & Fund Manager (Foreign Securities).
- Mr. Ajay Argal: VP / Senior Portfolio Manager (Equity).
- Mr. Anuj Tagra: Fund Manager.
- Mr. Pallab Roy: Fund Manager.
- Mr. Rohan Maru: Fund Manager.
- Ms. Chandni Gupta: Fund Manager.
This team's collective expertise is crucial to managing the various investment strategies across Franklin Templeton's fund offerings.
Scope and Investment Philosophy
Franklin Templeton's investment philosophy in India is deeply rooted in its global approach, emphasizing fundamental research, a long-term perspective, and disciplined portfolio management. Key aspects of their scope and philosophy include:
- Global Research & Local Expertise: Leveraging Franklin Templeton's vast global research resources and insights, combined with localized market understanding to identify investment opportunities in India.
- Long-Term Value Creation: A strong belief in long-term investing, focusing on companies and securities with sustainable competitive advantages and robust financials, rather than short-term market fluctuations.
- Rigorous Research-Driven Approach: Employing in-depth fundamental analysis for stock selection in equities and credit analysis for fixed income.
- Diversified Product Portfolio: Offering a broad suite of funds across different asset classes (equity, fixed income, hybrid, and international funds-of-funds) to cater to varied investor risk appetites and financial goals.
- Focus on Quality and Prudence: For equities, seeking high-quality businesses at reasonable valuations. For fixed income, a focus on credit quality, liquidity, and managing interest rate risk (though their experience in 2020 highlighted specific challenges in credit risk within certain market conditions).
- Client-Centricity: Aiming to provide transparent communication, robust investor services, and educational initiatives to empower investors.
Part 2: List of Funds with Brief Explanation
Franklin Templeton Mutual Fund offers a range of schemes across various categories (excluding the six wound-up debt schemes). Here's a list of some of their prominent active funds with a brief explanation:
Equity Funds:
- Franklin India Flexi Cap Fund: An open-ended equity scheme that invests across large-cap, mid-cap, and small-cap stocks, providing the fund manager with flexibility to allocate dynamically based on market opportunities. (Formerly Franklin India Equity Fund)
- Franklin India Focused Equity Fund: An open-ended equity scheme investing in a concentrated portfolio of a maximum of 30 stocks across market capitalizations.
- Franklin India Large Cap Fund: An open-ended equity scheme investing predominantly in large-cap stocks, focusing on established, stable companies. (Formerly Franklin India Bluechip Fund)
- Franklin India Large & Mid Cap Fund: An open-ended equity scheme that invests in a mix of large-cap and mid-cap companies, combining the stability of large caps with the growth potential of mid caps. (Formerly Franklin India Equity Advantage Fund)
- Franklin India Mid Cap Fund: An open-ended equity scheme investing predominantly in mid-cap stocks, targeting companies with strong growth potential that are generally past the early-stage volatility of small caps. (Formerly Franklin India Prima Fund)
- Franklin India Small Cap Fund: An open-ended equity scheme investing predominantly in small-cap stocks, aiming for high growth from smaller companies, typically associated with higher risk and volatility. (Formerly Franklin India Smaller Companies Fund)
- Franklin India ELSS Tax Saver Fund: An Equity Linked Savings Scheme (ELSS) that invests predominantly in equities and qualifies for tax deductions under Section 80C, with a 3-year statutory lock-in period. (Formerly Franklin India Taxshield)
- Templeton India Value Fund: An equity scheme that follows a value investing strategy, seeking undervalued stocks with strong fundamentals and potential for long-term appreciation. (Formerly Templeton India Growth Fund)
- Franklin India Opportunities Fund: An open-ended equity scheme that aims for long-term capital growth by investing in companies with strong growth potential due to specific opportunities.
- Franklin India Build India Fund: A thematic equity fund focusing on companies that are expected to benefit from reforms and growth in the infrastructure and related sectors.
- Franklin India Technology Fund: An equity sectoral/thematic fund that invests in companies within the technology sector, including IT services, software, and related industries.
- Franklin India NSE Nifty 50 Index Fund: An equity index fund that passively tracks the Nifty 50 index.
Debt Funds (Active Schemes):
- Franklin India Liquid Fund: A debt liquid fund that invests in very short-term money market instruments, offering high liquidity and aiming for stable, low-risk returns.
- Franklin India Overnight Fund: A debt overnight fund that invests in debt and money market instruments with a maturity of one day, offering maximum liquidity.
- Franklin India Floating Rate Fund: A debt fund that invests in instruments with floating interest rates, aiming to reduce interest rate risk in a rising rate environment.
- Franklin India Corporate Debt Fund: A debt fund that invests predominantly in corporate bonds, aiming to generate income and capital appreciation from investment-grade corporate debt.
- Franklin India Banking & PSU Debt Fund: A debt fund that primarily invests in debt instruments issued by banks and Public Sector Undertakings (PSUs).
- Franklin India Government Securities Fund: A debt gilt fund that invests predominantly in government securities (G-Secs), which carry no credit risk.
- Franklin India Money Market Fund: A debt money market fund investing in money market instruments with short maturities.
Hybrid Funds:
- Franklin India Balanced Advantage Fund: A hybrid dynamic asset allocation fund that dynamically adjusts its allocation between equity and debt based on market valuations and other predefined parameters.
- Franklin India Aggressive Hybrid Fund: A hybrid fund that invests a higher proportion (typically 65-80%) in equities for growth and the remainder in debt instruments for stability. (Formerly Franklin India Equity Hybrid Fund)
- Franklin India Equity Savings Fund: A hybrid equity savings fund that invests in equity, debt, and arbitrage opportunities, aiming for relatively stable and tax-efficient returns.
- Franklin India Conservative Hybrid Fund: A conservative hybrid fund, primarily focused on debt instruments with a smaller allocation to equities for modest growth. (Formerly Franklin India Debt Hybrid Fund)
- Franklin India Multi Asset Allocation Fund: A hybrid multi-asset allocation fund that invests across at least three asset classes (e.g., equity, debt, commodities/gold/REITs/InvITs).
- Franklin India Retirement Fund: A solution-oriented hybrid fund designed for retirement planning, with varying equity and debt allocations based on the investor's age profile. (Formerly Franklin India Pension Plan)
Fund of Funds (FoFs) / International Funds:
- Franklin India Dynamic Asset Allocation Active Fund of Funds: A domestic fund of funds that invests in other Franklin Templeton schemes, dynamically allocating across asset classes.
- Franklin India Feeder - Franklin U.S. Opportunities Fund: A fund of funds that invests in the Franklin U.S. Opportunities Fund, an underlying global fund focusing on U.S. equity opportunities.
- Franklin India Income Plus Arbitrage Active Fund of Funds: A domestic fund of funds that generates returns from arbitrage opportunities in the Indian market.
“Ready to watch your money grow? Let's explore how mutual funds can help you achieve your financial goals.”
“Experience a smarter way to grow your wealth. Wish N Gain helps you turn every investment wish into a solid gain.”
Other Mutual Fund Houses
