Franklin Templeton Investments (India) has announced a tax –free dividend of Rs 4.50 per unit (Face value of Rs 10) under its open-ended diversified equity fund Templeton India Growth Fund. Record date for the same is December 26 2007.

UTI Mutual has announced the launch of UTI Long term Advantage Fund Series II. This fund is a ten-year close-ended Equity Linked Saving Scheme with a redemption facility after an initial lock-in-period of three years from the date of allotment at relevant redemption price.

The investment objective of the scheme is to provide medium to long-term capital appreciation along with income tax benefit.

An investment made in the scheme will qualify for deduction up to Rs 1, 00,000 under section 80 C of the Income Tax Act 1961.

The plan is open to resident, institutions as well as to NRI and FIIs. However tax benefit will be available only to individuals and HUF.

Asset allocation: Under normal condition the fund will invest 80-100 per cent of the assets in equity and 0-20 per cent in debt and money market instruments.

The plan offers two options growth and dividend option. The units under the scheme stand automatically redeemed on maturity.

Minimum initial investment is Rs 500 and in multiplies of Rs 500 thereafter, with no upper limit.

The units can be purchased only during the NFO period at the face value of Rs 10 per unit.

The scheme will offer redemption/switch out of units on a daily basis at NAV based on prices after expiry of initial lock-in-period of three years from the date of allotment i.e. 31.03.2008.

Load structure: The scheme, being close-ended, is not permitted to charge entry load. The fund will not charge any exit load at the time of maturity. However, if redeemed after the initial period of three-years an early exit charge equivalent to the proportionate unamortised portion of the NFO expenses outstanding as on the date of redemption will be levied. The fund is benchmarked against BSE 100.The NFO will close for subscription on March 19, 2008.

(This article was published in the Business Line print edition dated December 23, 2007)
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