FUND OF FUNDS SERIES: FRANKLIN TEMPLETON INDIA DYNAMIC PE RATIO FUND

 

INTRODUCTION:

FT India Dynamic PE Ratio Fund of Funds (FTDPEF), an open end fund of funds scheme, which seeks to maximize investment opportunities arising from market ups and downs. Uniquely, the fund rebalances the portfolio between underlying equity and debt funds based on the market conditions indicated by the P/E
(Price to Earnings) ratio.

Key Highlights:

• An open end fund of funds with a  unique in-built buy-sell discipline based on market conditions. Rebalancing done on monthly basis.
• Equity component invested in Franklin  India Bluechip Fund (FIBCF), a largecap fund with a performance track record of over 16 years.
• Debt component invested in Templeton India Income Fund (TIIF),  an income scheme investing largely in  G-Secs, PSU Bonds and Corporate debt papers.
• Ideal for those wanting to take advantage of the upside while staying relatively protected on the downside with an investment horizon of at least 3 years.

INVESTMENT PATTERN

P/E LEVELS-------------------EQUITY ALLOCATION--------------- DEBT ALLOCATION
Upto 12 -----------------------90 - 100-------------------------------- 0 -10
12 - 16------------------------70 - 90--------------------------------- 10 - 30
16 - 20------------------------50 - 70--------------------------------- 30 - 50
20 - 24------------------------30 - 50----------------------------------50 - 70
24 - 28------------------------10 - 30----------------------------------70 - 90
Above 28----------------------0 - 10-----------------------------------90 - 100

Source www.franklintempletonindia.com