Franklin Templeton Mutual Fund launches new scheme after two years

Franklin Templeton Mutual Fund is launching a new scheme after a gap of two and a half years. The fund house has received approval from Sebi to launch a balanced advantage fund. This will be Franklin Templton’s first product offering after it faced rough weather following its decision to shut six debt schemes in 2020.

FIBAF is a dynamically-managed fund. Like other blanched advantage funds or BAFs, the equity exposure will be maintained between 65% and 100%. At any point, if the equity allocation falls below 65%, the gross equity exposure will be maintained using equity derivatives. Debt instruments will make up for the rest.

The NFO will open for subscription on August 16 and will close on August 30.

Avinash Satwalekar, President, Franklin Templeton–India, said, “ This new fund is for investors looking for a balanced exposure to equity and debt over the longer term while also capitalizing on opportunities provided by the market from time to time. Apart from the benefits of diversification, this formula-driven approach with its in-built ‘buy-sell’ discipline helps to negate the behavioural biases caused due to emotions of greed and fear.”