Franklin launches diversified high growth companies fund

New Delhi, May 29 (UNI) Franklin Templeton Investments (India) today announced the launch of a new open end diversified equity fund called Franklin India High Growth Companies Fund (FIHGCF).

The fund seeks to provide capital appreciation through investments in Indian companies / sectors with high growth rates, an official statement said.

The New Fund Offer (NFO) period will be from May 31, 2007 to June 29, 2007 during which, units will be available at Rs 10 per unit (plus applicable load).

''The changing investment landscape in India along with a growing recognition of the long term potential has led to increased interest for equities amongst Indian investors. At the same time, a large number of investors are looking for an equity product that focuses on achieving capital appreciation through fast growing Indian companies,'' said Franklin Templeton President Vivek Kudva.

The fund's focus will be on companies offering the best trade-off between growth, risk and valuation, said a statement.

The fund will look for sustainable competitive advantages - proprietary intellectual property, strong management, distribution/cost advantages or entry barriers specific to the respective sector, it added.

The fund will be managed based on a mix of top-down (macro analysis to identify sectors) and bottom up approach (micro analysis to pick stocks within these sectors).

The blended investment style fund provides a Plan/Option of Growth and Dividend (with Reinvestment and Payout facility).

The minimum investment amount is Rs 5,000 and in multiples of one rupee.

The load structure of the fund stiputates a 2.25 per cent load on entry below Rs 5 crore while there is no entry load for amounts above Rs 5 crore.

If amount redeemed is less than Rs 5 crore and if it is redeemed within six month from the date of allotment there will be a exit load of 0.5 per cent and for redemption after one year of allotment and above Rs 5 crore there will be a 1 per cent exit load.

UNI