Mumbai: Distributors will now have a tool to help construct a portfolio of schemes to reach the investor’s goals. Franklin Templeton Mutual Fund today unveiled its Family Solutions tool which recommends a set of schemes based on the personal information provided by investors. The tool offers to make a financial plan for any of these three goals: Child’s Future, Retirement and Wealth Builder. Based on the personalised inputs provided by each investor, the tool will throw up a set of schemes which is ideal for the investor to achieve his/her goal. However, the tool will recommend only open-ended schemes belonging to Franklin Templeton MF. The fund house has a kitty of 38 schemes, out of which 13 are equity diversified schemes and 12 debt and liquid.
The tool is designed for advisors, helps them provide a portfolio of schemes based on the needs of a client and not just based on the past returns generated by the scheme. The tool is equally helpful for large distributors and small IFAs, says Harshendu Bindal, President, Franklin Templeton Mutual Fund.
The planner, available free of cost to investors and advisors, is designed based on inputs from distributors and investors.
According to Bindal, around 75 per cent of Franklin’s assets are retail and 25 per cent institutional. The product is designed keeping in mind the retail focus of the fund house.
The fund house plans to promote this software in a big way across India. It will be holding training sessions for all its empanelled distributors in 30 cities, starting from Mumbai. It also plans to run ad campaigns to popularize this tool.
How does it work?
Investors will have to submit the filled up Family Solutions form and Goal Sheet with a single cheque to the fund house. The investors will receive a welcome letter along with a customised account statement highlighting the goal for which the investment is made. The process doesn’t end there. Investors and advisors can actually review and track the progress of their goals through this software.
Presently investors only have an option to submit the forms physically on their own or through the advisor. This tool is likely to be of great convenience to investors and IFAs in selecting schemes aligned to their goals.
It remains to be seen whether other fund houses will launch this model.
