Franklin Templeton Mutual Fund files draft document with Sebi for a multicap fund

Franklin Templeton Mutual Fund has filed a draft document with Sebi for a multicap fund. Franklin India Multicap Fund will be an open-ended scheme investing across largecap, midcap and smallcap stocks.

The scheme aims to generate long-term capital appreciation by investing in a portfolio of equity and equity-related securities of largecap, midcap and smallcap companies.

The scheme will be benchmarked against the Nifty 500 MultiCap 50:25:25 Total Returns Index. R. Janakiraman and Sandeep Manam will be the managers of this fund.


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The scheme will offer regular and direct plans with growth and IDCW options. The minimum amount of subscription for fresh purchase will be Rs 5,000. For additional purchase, the minimum amount will be Rs 1,000.

For Systematic Investment Plan (SIP), the minimum amount required will be Rs 500. The minimum amount for redemption will be Rs 1,000. The amount for subscription, SIP and redemption in excess of the minimum amount specified above will be any amount in multiple of Re 1.

In respect of each purchase of units, an exit load of 1% will be applicable if the units are redeemed/switched-out within one year of allotment.

The scheme will invest 75-100% in equity and equity-related securities of largecap, midcap and small cap companies, 0-25% in debt and money market instruments, cash and cash equivalent, and 0-10% in units issued by REITs and InvITs.

The scheme will employ a bottom-up approach for stock selection within each market capitalisation and endeavour to maintain sectoral diversification in the portfolio.

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The scheme will be suitable for investors who are seeking long-term capital appreciation and want a fund that invests predominantly in equity and equity-related securities across largecap, midcap and smallcap stocks.

The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.