Templeton AMC repositions Internet fund

Templeton Asset Management Pvt Ltd has repositioned its Franklin Internet Opportunities Fund. The fund will now be called Franklin India Opportunities Fund, an open end diversified equity scheme that seeks to generate capital appreciation by capitalising on the long-term growth opportunities in the Indian economy.

"The change in the investment objective of the scheme is not a reflection of our view on the technology sector," fund managers from Templeton said, adding that the purpose of this change is to broad base the investment universe of the scheme so that investors can benefit from the strong potential of various sectors.

"Investors who are looking for an exposure to the technology sector can always invest in Franklin Infotech Fund," said the sources.

K N Siva Subramanian, senior vice president, investments and fund manager of Franklin India Opportunities Fund, said, "The economy is on a growth path, with GDP growth estimates in excess of 8 per cent. A number of sectors will contribute to this growth, as well as benefit from it. Franklin India Opportunities Fund will strive to identify the best sector bets at different points in time and invest in the most promising opportunities in these sectors."

The earlier Franklin Internet Opportunities Fund (FIOF) was an open end sector equity scheme designed to help investors capitalise on the growth opportunity that the internet revolution was expected to bring about - by investing in companies that were fueling the internet revolution, and in those that were likely to benefit from it.

Sources said the fund had then expected that investment opportunities would increase in due course, but it did not happen. As a result, the Internet Opportunities Fund has been managed with limited choices resulting in a sub-optimal risk-return situation for the portfolio.