Good news, this diwali we have a new fund offering from Franklin Templeton India – Franklin Templeton Capital Safety Fund. This is India’s first capital protected scheme and the fund targets capital preservation according to the new guidelines on capital protection by SEBI.
The fund aims to protect capital by investing in high quality equity and provides safety of capital through debt investments. This fund has AAA (so) rating from Crisil indicating the highest degree of certainty on timely repayment of the units at face value.
Templeton Capital Safety Fund Offer Details : The new fund offer opens on October 31 and closes on November 30. The close-ended fund offers two plans 3 and 5 year plans with Growth and Annual Dividend Plans. Minimum investment for the fund is Rs 10,000.
The fund will invest 70 per cent in debt at any given time in AAA or higher quality paper to protect the capital with the rest being in equity. Compared to HDFC MIP funds which invest around 80% in debt and 20% in equity this has higher returns potential.
Mr Kudva said, “The fund is planning to get listed on the NSE to provide enhanced liquidity as according to SEBI guidelines, these funds cannot be repurchased,”
Please read the offer document and prospectus before investing.
Their are rumors again on the street that HDFC is planning to merge itself HDFC Bank Limited. HDFC Bank stock has moved up considerably since the June market crash while HDFC Limited has been a market performer. This may imply that HDFC Bank shareholders are likely to benefit from the merger. HDFC has rejected any such move but in the Diwali Special of Samavat interview with Ramesh Damani, Rakesh Jhunjhunwala and Shankar Sharma, Mr. Jhunjhunwala was of the opinion that HDFC Bank Limited is a great stock to have in one portfolio.
