Calcutta, Nov. 26: Franklin Templeton Mutual Fund has launched an overseas investment scheme called Franklin India International Fund.
The scheme can take a maximum subscription of Rs 250 crore (approximately $ 50 million) and its assets will be invested in US government bonds.
Franklin Templeton recently acquired Pioneer ITI’s assets, and manages around Rs 9,350 crore. It is part of Franklin Templeton Investments — one of the largest financial services group that manages $ 252.6 billion in assets worldwide.
At least 80 per cent of the assets of the scheme will be invested in US government securities through Franklin US Government Fund, a 10-year old scheme that has a corpus of $ 2.5 billion. The balance will be retained in India and invested in short-term instruments and used to address liquidity requirements.
Nilesh Shah, Franklin Templeton’s chief investment officer (fixed income) said, “As the movement of the rupee will have an impact on the performance of the scheme, we shall strive to reduce the impact of any appreciation of the rupee by hedging our position in the forward market.”
Rajiv Vij, regional head for India, said, “The scheme will be suitable for investors who have future dollar expenses as they can hedge against depreciation of the rupee vis-à-vis the dollar by investing in the scheme.”