Franklin Templeton gives tax-free dividend in "Opportunities Fund"
Mumbai, Sep 11 (UNI) Franklin Templeton Investments (India) has announced a tax-free dividend of Rs 3.00 per unit (face value of Rs 10) in its open-end equity fund 'Franklin India Opportunities Fund (FIOF)'.
All investors registered in the Dividend Plan as on September 13 will receive this tax-free dividend, said the company's release here today.
Pursuant to payment of dividend, the NAV (net asset value) of the fund would fall to the extent of payout). The fund invests predominantly in companies and sectors that have the potential to take advantage of the growth opportunities.
Speaking about the fund, Franklin Templeton Investments (India) President Vivek Kudva said, ''FIOF has delivered a good performance since its re-positioning as a diversified equity fund. The fund has delivered returns of 52.42 per cent compared to returns of 35.63 per cent on its benchmark - BSE 200 over a three year period (as of August 31, 2006 past performance may or may not be sustained in the future).
In light of this performance, Mr Kudva said: ''We are declaring the annual dividend in the fund to reward investors. The fund has the flexibility to take focused exposures to sectors/stocks believed to have higher growth potential and is a good topping for an existing equity portfolio.'' FIOF Senior Vice President (Equity) and Portfolio Manager K N Sivasubramanian said, ''Structural changes in the Indian economy are throwing up new growth opportunities for a wide cross-section of the Indian companies. Given its focused investment style, FIOF appears well-positioned to take advantage of these trends. The fund is more dynamically managed compared to our diversified equity funds, and takes more concentrated bets to sector/stocks with potential for high growth. Given its investment style, the fund may exhibit relatively high volatility compared to a normal diversified equity fund, but has the potential to deliver commensurate risk-adjusted returns.'' The record date for the dividend is September 13 and any purchases on or before this date will be eligible for the dividend.
There will be a one-day book closure for the growth and dividend plans on September 14 and will reopen for fresh purchases and redemptions next day. Under the dividend reinvestment plan, the dividend declared will be reinvested at the NAV of September 15 and unitholders will be allotted additional units for the dividend amount.
UNI SN SSS VKG1828