Templeton India Growth Fund

Templeton India Growth fund is managed by Dr Mark Mobius a global investor and emerging markets fund manager. The fund manager has adopted the practice of value investing. Templeton India Growth fund was the first fund launched in India from the Franklin Templeton house. Its performance has not been good. Existing investors can exit the fund and new investors can skip the fund for better performing fund in this category.

Where does Templeton India Growth Fund invest your money?

Templeton India Growth Fund is a large and mid cap fund which means most of your money will be invested in giant, large and medium size companies.  Large cap companies tend to be stable compared to mid cap and small cap companies. Templeton India Growth has close to 52% exposure in giant and large companies, 48% exposure in medium size companies and the remaining portion is exposed to small and micro size companies. Mid cap companies can give booster returns as they transform into large cap ones but this happens not-so-frequently.

Suitable for what?
  • Child's education
  • Child's marriage
  • Buying house
  • Planning for retirement
  • Not suitable for?
    • Creation of wealth
    • Lifestyle needs
    How much to invest?

    Minimum one time investment is Rs 5000 and minimum SIP is Rs 500 per month. Make Templeton India Growth as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Do not do the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

    Our recommendation for fresh investment
    Not Recommended
    Our recommendation for existing investment
    Not Recommended
    How has Templeton India Growth fund performed in the past?

    If you had invested Rs 1 lakh when the fund was launched in Sep 1996 your value of investments would be around Rs 12 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.5 lakhs. The performance in the last five years has not been better or similar to other mid cap mutual funds. The fund has been giving around 9% every year for those who stayed invested for last 5 years.

    Assume you had invested Rs 10,000 every month in Templeton India Growth fund through SIP for the past 5 years today you would have around Rs 7.6 lakhs.

    What charges apply?

    A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

    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 Growth Fund is 2.35%. 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.

    When to exit?

    Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

    What are the tax implications?

    The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Templeton India Growth fund does not qualify for sec 80C ELSS benefits.

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