Franklin Templeton India to launch Multi-Asset Solution Fund

The fund seeks to achieve capital appreciation and diversification through a mix of strategic and tactical allocation to various asset classes such as equity, debt, gold and cash.

The fund shall invest in existing schemes of Franklin Templeton and ETFs which have a long term performance track record.

FIMAS has set broad investment range for allocation to various asset classes and this enables the fund to change asset allocation exposures dynamically, wherein the asset allocation decisions are based on a scientific approach based on an in-house proprietary model.

The New Fund Offer will be open from Nov 7 to Nov 21 during which units will be available at Rs.10 per unit.

Speaking about the rationale for launching the fund, Harshendu Bindal, President, Franklin Templeton Investments - India said, “We at Franklin Templeton believe that a well-diversified portfolio can provide more flexibility and therefore more opportunities, and in the long run, potentially enhance risk-adjusted returns. When we look at the last 10 year calendar returns for various asset classes, we see that different asset classes outperform over different time periods, depicting that a portfolio requires a mix of equity, debt, gold and cash."

"At Franklin Templeton, multi-asset investing is defined as the process of providing exposure to a mix of asset classes and investment styles in a single portfolio, constructed for different levels of risk tolerance. As fundamental investors, we look to various economic, valuation and sentiment parameters, as well as more technical indicators such as sentiment and risk forecasts, to make our asset allocation decisions,” said he.

Explaining the benefits of FIMAS, he added “Given the complexity of markets, investors need simplicity and are searching for all-in-one portfolios that have the flexibility to position themselves for current opportunities and are managed for risks. We believe that FIMAS simplifies the investment process for investors who currently have to invest in a range of asset classes to achieve their desired asset allocation. FIMAS makes the investment process much easier for investors, on account of its dynamic asset allocation rebalancing feature."

"Normally market movements make an investor’s asset allocation go awry, and frequent rebalancing is cumbersome and is inefficient from a tax perspective. FIMAS active approach to rebalance exposures to multiple asset classes such as Equity, Debt, Gold and Cash based on the in-house proprietary model makes it an ideal investment avenue for investors and distributors seeking a ‘one-stop solution’ for all asset allocation needs," he said.