Franklin Templeton Mutual Fund has launched Franklin India Balanced Advantage Fund, an open-ended dynamic asset allocation fund.
The fund aims to generate long-term capital appreciation and income generation through tactical allocation between equity and debt based on market valuations and fundamental factors-driven views.
Commenting on the launch, Avinash Satwalekar, President, Franklin Templeton - India said, “We are eagerly looking forward to embarking on a new chapter of growth in India and the launch of the fund represents the first of many steps to this end.”
Talking about the model, K Rajasa, VP & Portfolio Manager said, “We will use a combination of quantitative and qualitative factors to determine the equity asset allocation. The quantitative parameter would be based on the month-end weighted average Price to Earnings (P/E) ratio and Price to Book Value (P/BV) ratio of the Nifty 500 Index. These parameters will be accorded 50% weightage each and added to arrive at the final equity allocation. We would also overlay the quantitative parameter-based equity allocation with a qualitative assessment of various factors such as macroeconomic trends, policy backdrop, aggregate corporate fundamentals and market liquidity models.”
