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Prima to Shut its Door

…but will welcome regular investors who desire to invest in the fund through the SIP route

Franklin Templeton Mutual Fund has announced the suspension of fresh sale of units under Franklin India Prima Fund. With effect from February 4, 2006, no fresh sales will be made under the scheme for a period of six months. However, it's only the lump sum investments that have been suspended and the fund will be open for fresh investments through systematic investment plans/ systematic transfer plans. The period of suspension may be extended or reduced based upon the outlook of the fund house on the liquidity/ valuation levels and the investment opportunities.

Franklin India Prima has witnessed a more than three-fold increase in its corpus from about Rs 634 crore by the end of 2003 to Rs 2,226 crore as on December 31, 2005. This five-star fund boasts of a sterling long-term performance record. With annualised returns of 54.17 per cent over a five year horizon, the fund ranks first in the category.

This is the second instance when a mid-cap stocks oriented fund has suspended the sale of fresh units. Some time back, Reliance Growth had taken a similar step owing to concerns about the growing size of the fund. Prior to that, HSBC Mutual Fund had capped the size of its mid-cap fund- HSBC Midcap to Rs 700 crore right from the time of launch of the fund.