Templeton India Children Asset Plan-Education Plan

Templeton India Children’s Asset Plan-Education Plan is a balanced mutual fund. This fund is managed by Anand Radhakrishnan and Anil Prabhudas. The fund has been a laggard. If you hold units in this fund you can exit them now to invest in a better fund.

Where does Templeton India Children’s Asset Plan-Education Plan invest your money?

Templeton India Children’s Asset Plan-Education Plan is a debt oriented hybrid fund which invests your money in both equity securities and debt securities. It has more than 82% exposure to cash and cash equivalents. Majority of your money will be invested in cash and cash equivalents which are perceived to be highly liquid, of good credit quality but yield low returns.

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's education
  • Marriage
  • Home Purchase
Not suitable for?
  • Long term needs
  • Creation of wealth
Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Not Recommended
How has Templeton India Children’s Asset Plan-Education Plan performed in the past?

If you had invested Rs 1 lakh when the fund was launched at June 1998, your value of investments would be around Rs 3.4 lakhs. If you had invested Rs 1 lakh five years back it would have dropped to Rs 1.3 lakhs. The performance has been worse than other debt oriented hybrid mutual funds. The fund has been giving at around 9% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in Templeton India Children’s Asset Plan-Education Plan through SIP since inception today you would have around Rs 6.9 lakhs.

What charges apply?

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Templeton India Children’s Asset Plan-Education Plan is 2.43%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

What are the tax implications?

Debt oriented hybrid funds attract tax at the marginal tax slab if units are withdrawn before 1 year of investing. If held for more than a year they are more tax-efficient than bank deposits since they are taxed at the rate of 10.3% when non-indexed or 20.6% if opting for indexation. Interest on savings deposit and fixed deposit is taxed at the marginal tax slab (except savings deposits earning interest less than Rs 10,000 a year, which is tax exempt). Templeton India Children’s Asset Plan-Education Plan does not qualify for sec 80C ELSS benefits.

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