Templeton MF Ushers in changes in its Offer Documents

The following changes are being made in the existing STP facility:

The minimum account balance amount to start the STP facility stands modified as follows:

On Templeton India Income Fund, Templeton India Income Builder Account, Templeton Monthly Income Plan, FT India Monthly Income Plan, Templeton India Government Securities Fund, Templeton Floating Rate Income Fund (Long-Term Plan) it stands changed from Rs 25,000 to Rs 12,000.

On Templeton India Short-Term Income Plan, Templeton India Liquid Fund, Templeton India Treasury Management Account and Templeton Floating Rate Income Fund (Short-Term Plan) it will be Rs 1 lac.

Finally, on Templeton India Treasury Management Account – Institutional Plan it shall now be Rs 1 crore.

Moreover, there will be no entry load levied on transfers through the STP facility. However, an exit load equivalent to the entry load will be applicable if the units allotted are redeemed within one year of allotment or in case the STP is prematurely terminated.

Further, the scheme FT India Life Stage Fund of Funds has been added to the list of open end hybrid schemes to which the funds may be transferred under this STP facility.

SWP facility is being introduced in FT India Life Stage Fund of Funds: To start the SWP facility, the minimum account balance would have to be Rs 12,000. The frequency of withdrawals could be monthly or quarterly. The minimum withdrawal amount would have to be Rs 1,000. There are two options available – under the Fixed Amount option a fixed amount can be withdrawn either on the 15th or the last business day of every month/quarter, while under the Capital Appreciation option the capital appreciation as on the last business day of the month can be withdrawn. However, this facility would not be available on investments under a lock-in period.

Finally, the sale of units of Franklin India Index Tax Fund would stand suspended.

All the above changes would come into effect from August 17, 2004