Fund house Franklin Templeton Investments (India) Ltd has launched its capital protection fund scheme, whereby the asset management company safeguards investors' capital, irrespective of the performance of the scheme.
The scheme, Franklin Templeton Capital Safety Fund, the first of its kind in the country, has been floated after Securities and Exchange Board of India came out with guidelines for such funds, which ensure protection of capital.
The closed-ended scheme, with a minimum investment of Rs 10,000, has been given AAA (SO) rating by Crisil and is benchmarked against Crisil MIP Blended Index. It has a three year and five year investment plans with growth and annual dividend options.
The scheme envisages to invest around 20 to 30 per cent in equities and the remaining in debts. Santosh Kamath will be managing the debt investment portion of the scheme and Satish Ramanathan will head the equity portion investment.
"The scheme enables investors to benefit from the upside potential of equity investments without subjecting their capital to market-related volatility," Franklin Templeton India president Vivek Kudva said.Santosh Kamath, chief investment officer, fixed income, said the debt investment in this fund will be conservatively managed to reduce both credit and interest rate risks, while the equity portion will be managed by the equity team.