Franklin Templeton launches fund that will invest in US firms

Mumbai: Franklin Templeton Investments (India) today launched an open-ended fund which will invest in US-based companies across sectors as part of its international diversification approach.

The new fund offer (NFO), FT India Feeder, will close for subscription on January 31, the private mutual fund house said.

"International diversification is the key ingredient for long-term success of an investment portfolio as the level of asset management have not grown since the last two years due to increased market volatility. This has increased the acceptance of diversification as a key investment tool," Franklin Templeton India President Harshendu Bindal told reporters here.

Indian investors traditionally have had a low exposure to global funds due the relatively better performance of domestic markets, he added.

The NFO will help investors achieve diversification through exposure to high quality US companies that are currently trading at attractive valuations, Bindal said.

The total asset under the master fund (Franklin US Opportunities Fund) is about about USD 2.4 billion.

The total asset size of Franklin Templeton Investments (India) as of December 31 is Rs 34,000 crore.