Franklin Templeton to launch Franklin India Balanced Advantage Fund (FIBAF) in Rajasthan

Avinash Satwalekar, President Franklin Templeton India with Anand Radhakrishnan, MD and CIO, EME India at the event

Jaipur, August 08, 2022: Franklin Templeton (India) is launching an open-ended dynamic
asset allocation fund called Franklin India Balanced Advantage Fund (FIBAF) in the
Rajasthan market. The fund intends to generate long-term capital appreciation and income
generation by investing in a dynamically managed portfolio of equity and equity related
instruments and fixed income and money market instruments.
Franklin Templeton sees strong potential for growth of mutual funds in Rajasthan as new
investors look at alternative modes of investment following declining returns from traditional
assured returns products. The fund house is working on growing its distributor network in
Rajasthan, with the aim of reaching out to more investors to apprise them about the
advantages of mutual fund investing. The assets under management of the mutual fund
industry in Rajasthan currently stands at around Rs. 70,000 crores spread across key cities
like Jaipur, Udaipur, and Jodhpur; and is poised for exponential growth in the medium to long
FIBAF is a prudent choice for investors seeking a ‘one-stop’ solution for their investment
needs as it offers tactical allocation between equity and debt based on market valuations
and fundamental factors-driven views. The product is suitable for investors who are not only
keen to take advantage of the growth opportunities in equities but also prefer to reduce the
impact of market volatility. The New Fund Offer opens on August 16, 2022, and will close
on August 30, 2022, during which units will be available at Rs.10/- per unit.
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton
– India, said, “We are excited to bring another diversified investment offering that helps
investors in Rajasthan navigate through changing markets, in a simple and efficient manner.
We are eagerly looking forward to embarking on a new chapter of growth in India, and the
launch of FIBAF represents the first of many steps to this end.
“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 behavioral biases caused due to emotions of greed and
Commenting on the fund launch, Anand Radhakrishnan, Managing Director & Chief
Investment Officer – Emerging Markets Equity – India, Franklin Templeton, said,
“Global equity markets have corrected in recent months and continue to be volatile amidst
multiple headwinds of inflation, interest rate, and ongoing geopolitical tensions. Indian
markets have also been impacted but have held up much better compared to major

developed and EM counterparts (in dollar terms). Such episodes of market volatility can
push investors off the course leading them to take sub-optimal decisions. With that in mind,
Franklin India Balanced Advantage Fund will adopt a Flexi-cap 1 approach for equity
allocation. The scheme will endeavor to invest in high-quality instruments
with over 80% of fixed income portfolios in AAA-rated papers. This makes it suitable for
investors looking for the best of both worlds.
“The asset allocation is derived from Franklin Templeton’s in-house proprietary dynamic
asset allocation model and an active stock selection process similar to a Flexi-cap portfolio.
We believe this will help improve outcomes for investors by enabling them to stay invested
over longer periods.”
Speaking on the fund strategy, K Rajasa, VP & Portfolio Manager– Franklin India
Balanced Advantage Fund, said, “FIBAF is a dynamically managed fund and a complete
portfolio solution. The asset allocation strategy backing FIBAF has been successfully
optimized for the inputs used and periodicity of asset rebalancing. The gross equity
exposure is intended to 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 fund is eligible for equity taxation
if the allocation to the equity asset class is above 65% for the year.”
Elaborating further, she said, “We will use a combination of quantitative and qualitative
factors to determine the equity asset allocation. The quantitative parameter would be based
on the month-end weighted average Price to Earnings (P/E) ratio and Price to Book Value
(P/BV) the ratio of the Nifty 500 Index. As per the ratio bands, the corresponding equity
allocation will be identified for both P/E and P/BV separately. These parameters will be
accorded 50% weightage each and added to arrive at the final equity allocation. We would
also overlay the quantitative parameter-based equity allocation with a qualitative assessment
of various factors such as macroeconomic trends, policy backdrop, aggregate corporate
fundamentals, market liquidity models, etc.”
Franklin India Balanced Advantage Fund will also offer investors a systematic withdrawal
facility that will allow them to withdraw a fixed amount at a pre-defined frequency subject to
conditions mentioned in Scheme Information Document. For more details on Franklin India
Balanced Advantage Fund – click here

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