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FI Smaller Companies Fund

Franklin Templeton is set to launch yet another equity fund. Named as Franklin India Smaller Companies Fund (FISCF), it will be a five-year closed-end fund and will provide for liquidity every six months. After five years, the fund will become open-ended. The fund will be initially available for subscription from November 16 to December 14, 2005.

Benchmarked against the CNX Midcap Index, FISCF will invest in the mid- and small-cap stocks. Small companies have been defined as the ones whose market capitalisation is lower than the 100th stock in S&P CNX 500. The fund will not charge any entry load, while an exit load will be charged upon redemption before the maturity of the fund as per the following table:

Redemption Period  Exit Load (%)
Upto 12 months 4
After 12 but upto 24 months 3
After 24 but upto 36 months 2
After 36 but upto 48 months 1
After 48 but upto 54 months 0.5