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

Published in Investment Wednesday, 27 July 2022 17:48




FIBAF aims to combine the best of both worlds, deriving from Franklin Templeton’s in-house proprietary dynamic asset allocation model

Managing equity exposure through equity derivatives, based on market valuations &fixed income exposure


Mumbai :: Franklin Templeton (India) is launching an open-ended dynamic asset allocation fund called Franklin India Balanced Advantage Fund (FIBAF). 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.

FIBAF offers tactical allocation between equity and debt based on market valuations and fundamental factors-driven views. The product is suitable for those 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, AvinashSatwalekar, President, Franklin Templeton–India,said, “We are excited to bring another diversified investment offering that helps investors 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 a 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 behavioural biases caused due to emotions of greed and fear.”


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-course leading them to take sub-optimal decisions. With that in mind, Franklin India Balanced Advantage Fund will adopt a flexi-cap approach for equity allocation.The scheme will endeavour to invest in high quality instruments with over 80% of fixed income portfolio 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 modeland 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 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) 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. Formoredetails on Franklin India Balanced Advantage Fund–click here

NFO Features

Fund Description

A fund that invests in dynamically managed portfolio of equity and equity related securities, fixed income and money market instruments

Type Of Scheme

An open-ended dynamic asset allocation fund

NFO Dates

August 16, 2022, and close on August 30, 2022

Scheme Re-opens

For continuous Sale

And Repurchase On

September 8, 2022

Managed By

K Rajasa (Equity Portion), Umesh Sharma&Sachin Padwal Desai (Debt Portion), Sandeep Manam (Dedicated Fund Manager for overseas investments)

Investment Style

Blend of ‘growth’ and ‘value’ across market-cap

Minimum Amount

Subscription: Fresh Purchase - Rs.5,000/-. Additional Purchase - Rs.1,000/-. Redemption: Rs.1,000/-. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-.


Nifty 50 Hybrid Composite Debt 50:50 Index

Exit Load

•Upto 10% of the Units may be redeemed without any exit load within 1 year from the date of allotment

•Any redemption in excess of the above limit shall be subject to the following exit load:

1.00% - if redeemed on or before 1 year from the date of allotment

Nil - if redeemed after 1 year from the date of allotment


For further details refer Scheme Information Document available on










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