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Templeton India Equity Income

Franklin Templeton Mutual Fund has launched an equity fund that would invest in domestic as well as overseas markets. Named as Templeton India Equity Income Fund (TIEIF), the scheme will be available for initial subscription between March 22 and April 20, 2006. The fund seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have current or potential attractive dividend yield.

TIEIF will invest 70 to 100 per cent of its assets in equities. Within equities, large-cap stocks would account for 20 to 75 per cent of the assets, while exposure to mid- and smaller companies would be limited to 25 per cent of the portfolio. The fund plans to invest up to 50 per cent of its assets in foreign securities. It can also invest up to 30 per cent of the portfolio in debt and money market instruments.

During the NFO period, the fund would charge an entry load of 2.25 per cent for investment of less than Rs 5 crore and 0.50 per cent beyond that. An exit load of 0.50 per cent would be applicable for investments of less that Rs 5 crore and 1 per cent for an amount more than Rs 5 crore if redeemed within six months of the purchase. On an ongoing basis, the fund would charge an entry load of 2.25 per cent irrespective of the amount invested.