The Hindu Business Line : Franklin Templeton MF to rationalise funds

FRANKLIN Templeton Mutual Fund plans to rationalise schemes in order to eliminate duplication with funds that were added from the acquisition of Kothari Pioneer Mutual Fund.

Post rationalisation, the total number of funds will be between 35 and 38, according to Mr Ravi Mehrotra, President, Templeton Asset Management (India) Ltd. Speaking at a press conference to mark 10-years of completion of Templeton's Blue Chip and Prima funds, Mr Mehrotra said that the challenge of the mutual fund industry is to temper expectations.

Though the asset management company has planned no new product launches, the Franklin Internet Opportunities Fund will be repositioned as the Franklin Opportunities Fund. This will allow the fund to invest in a broad spectrum of sectors.

Improving the retail and distribution network of AMC is another area of focus. By a series of measures, including advertising and training and development of financial planners, Templeton hopes to reach out to more individual clients over the next 24 months.

The company plans to launch unit linked plans with insurance firms and pension advisory services in the future.

The Blue Chip and Prima funds together have assets worth Rs 2,200 crore. To celebrate the 10th anniversary of both these schemes, Franklin Templeton has announced special dividends, according to Mr K.N. Siva Subramanian, Senior Vice-President, Templeton. The record date for dividend for Prima is January 20 and Blue Chip is February 3.

Cautioning investors, Mr Sukumar Rajah, CIO, Templeton, said that the outlook for 2004 is not as rosy as 2003.