Franklin Templeton Mutual Fund has announced a change in the fundamental attribute of Franklin India Multi-Asset Solution Fund of Fund, an open-ended fund of fund scheme investing in funds which in turn invest in equity, debt and gold.
The scheme has been renamed Franklin India Income Plus Arbitrage Active Fund of Funds, which will be an open-ended fund of funds scheme investing in units of debt-oriented and arbitrage schemes.
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The changes will be effective from July 4 as informed by the fund to its unit holders through a notice cum addendum.
Earlier, the investment strategy of the fund was to provide an asset allocation solution to investors and the asset allocation was dynamically managed across Equity, Debt, Gold and Money Market and the allocation to the asset classes was made based on a combination of output from the proprietary model, a mix of quantitative and qualitative analysis and uses a combination of economic, valuation and momentum /sentiment factors.
Post the change in fundamental attribute, the scheme being a Fund of Funds (FoF), where the allocation to the underlying funds will be actively managed based on the fund manager’s view on the macro economy, interest rates, yield , credit spreads, systematic liquidity, yield curve, and arbitrage opportunities in the cash and derivatives segment of the equity market (for allocation to arbitrage schemes), and other parameters to optimize risk-adjusted returns, subject to regulations and prevailing laws.
The new asset allocation of the fund will be 0-65% in debt-oriented schemes, 35-100% in units of arbitrage fund, and 0-5% in money market instruments with maturity not exceeding 91 days (including tri party repo, government securities) and cash and cash equivalent.
The exit load applicable now is for each purchase of units , 1% will be charged if redeemed/switched out within three years of allotment but post the changes there will be no exit load.
Post the changes, the scheme will be managed by Rohan Maru, Pallab Roy and Rahul Goswami and will be benchmarked against 65% NIFTY Short Duration Debt Index + 35% NIFTY 50 Arbitrage Index.
The scheme will carry moderate risk post the changes which was earlier marked as high risk.
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In terms of prevailing regulatory requirements, investors in the Scheme are given an option to exit at the prevailing Net Asset Value (NAV) without any exit load, in case they do not wish to continue in this Scheme in view of the change in the fundamental attributes. The period of this no load exit offer is from June 4, 2025 to July 3, 2025 (both days inclusive)
Unitholders who do not exercise the exit option on or before 3.00 PM on July 3, 2025 would be deemed to have consented to the proposed change.
However, the exit option without load will not be available to investments in the Scheme made on or after June 4, 2025. Unitholders who have pledged their units will need to procure a release of their pledge prior to submitting their redemption request.
The scheme has been renamed Franklin India Income Plus Arbitrage Active Fund of Funds, which will be an open-ended fund of funds scheme investing in units of debt-oriented and arbitrage schemes.
Also Read | MF Tracker: Will this April midcap star sustain its momentum?
The changes will be effective from July 4 as informed by the fund to its unit holders through a notice cum addendum.
Earlier, the investment strategy of the fund was to provide an asset allocation solution to investors and the asset allocation was dynamically managed across Equity, Debt, Gold and Money Market and the allocation to the asset classes was made based on a combination of output from the proprietary model, a mix of quantitative and qualitative analysis and uses a combination of economic, valuation and momentum /sentiment factors.
Post the change in fundamental attribute, the scheme being a Fund of Funds (FoF), where the allocation to the underlying funds will be actively managed based on the fund manager’s view on the macro economy, interest rates, yield , credit spreads, systematic liquidity, yield curve, and arbitrage opportunities in the cash and derivatives segment of the equity market (for allocation to arbitrage schemes), and other parameters to optimize risk-adjusted returns, subject to regulations and prevailing laws.
The new asset allocation of the fund will be 0-65% in debt-oriented schemes, 35-100% in units of arbitrage fund, and 0-5% in money market instruments with maturity not exceeding 91 days (including tri party repo, government securities) and cash and cash equivalent.
The exit load applicable now is for each purchase of units , 1% will be charged if redeemed/switched out within three years of allotment but post the changes there will be no exit load.
Post the changes, the scheme will be managed by Rohan Maru, Pallab Roy and Rahul Goswami and will be benchmarked against 65% NIFTY Short Duration Debt Index + 35% NIFTY 50 Arbitrage Index.
The scheme will carry moderate risk post the changes which was earlier marked as high risk.
Also Read | Defence sector based mutual funds rally up to 60% in 3 months. Will the momentum continue?
In terms of prevailing regulatory requirements, investors in the Scheme are given an option to exit at the prevailing Net Asset Value (NAV) without any exit load, in case they do not wish to continue in this Scheme in view of the change in the fundamental attributes. The period of this no load exit offer is from June 4, 2025 to July 3, 2025 (both days inclusive)
Unitholders who do not exercise the exit option on or before 3.00 PM on July 3, 2025 would be deemed to have consented to the proposed change.
However, the exit option without load will not be available to investments in the Scheme made on or after June 4, 2025. Unitholders who have pledged their units will need to procure a release of their pledge prior to submitting their redemption request.
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