Franklin Templeton MF Introduces Facility for Subscription & Redemption of Units through Stock Exchange Infrastructure

With effect from 22 August 2011Franklin Templeton Mutual Fund has extended the facility to subscribe and redeem the units of the following schemes through the infrastructure of the National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Ltd. (BSE).
The following schemes will be traded through stock exchange:

Templeton India Equity Income Fund
Franklin India Prima Fund
Franklin India High Growth Companies Fund
Franklin India Opportunities Fund
Franklin India Index Fund
Franklin Infotech Fund
Franklin Asian Equity Fund
Franklin India Smaller Companies Fund
Franklin Build India Fund
FT India Balanced Fund
Templeton India Income Fund
Templeton India Income Builder Account
Templeton India Ultra Short Bond Fund
Templeton Floating Rate Income Fund
Templeton India Low Duration Fund
Templeton India Government Securities Fund
FT India Monthly Income Plan
FT India Life Stage Fund of Funds

Source:NAVIndia

Merger of Franklin FMCG and Franklin Pharma into Franklin India Prima Plus

With effect from 9 September 2011, Franklin Templeton Mutual Fund has announced that Franklin FMCG Fund (FFF) and Franklin Pharma Fund (FPF) would be merged into Franklin India Prima Plus (FIPP), Consequently, from the date of merger i.e., effective 9 September 2011, the investors of FFF and FPF would become investors of FIPP in the respective plans / options.

In terms of prevailing regulatory requirements, investors in FFF and FPF are given an option to exit at the prevailing Net Asset Value without any exit load, in case they do not wish to approve the merger. The period of this no load exit offer is valid from 8 August 2011 to 9 September 2011.

All systematic transactions including Systematic Transfer Plan (SIP), Systematic Transfer Period (STP), Dividend Transfer Period (DTP) or Systematic Withdrawal Plan (SWP) will continue under Prima Plus for its balance tenure subsequent to the merger.
If investors do not wish to continue the systematic transactions under Prima Plus, they are required to intimate the fund house in writing their unwillingness to continue the said facilities post merger latest by September 9, 2011.

SBI Gold New Fund Offers Minimum investment denomination in Rs 100

SBI Mutual Fund, one of India's largest mutual funds house has launched Gold Fund, an open ended Fund of Fund to enable the common man to invest systematically in gold and take advantage of the current rally. The NFO period is from 22 August 2011 to 5th September 2011.


SBI Gold Fund is an open ended Fund of Fund (FOF) scheme that invests predominantly in the units of SBI Gold Exchange Traded Scheme (SBI GETS). The scheme seeks to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS). You can invest in SBI Gold Fund just like any other mutual fund scheme without the hassles of opening a demat account, providing you an opportunity to take exposure into Gold as an asset class, in a convenient way.

Also check:

 How Gold funds are treated from tax point of view???

The fund is designed in such a way, that an investor can invest through a single investment or through Systematic Investment Plan (SIP) as per their convenience. The minimum denomination of investment is kept as Rs 100, which is very affordable for a common man.

SBI Gold Fund would allocate 95% to 100% of assets in Units of SBI GETS with medium to high risk profile. On the flipside it would allocate upto 5% of assets in Reverse repo and / or CBLO and / or short-term fixed deposits and/or schemes which invest predominantly in the money market securities or liquid schemes with low to medium risk profile.

The scheme offers two plans viz. growth and dividend plan. Under the dividend plan, payout and reinvestment facility is available.

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.

SBI Gold Fund offers Systematic Investment Plan (SIP) for the investors. SIP is offered for a minimum of Rs 100 per month.

Entry load charge will be nil for the scheme. Exit load charge will be 1% if exited within 1 year from the date of allotment and nil if exited after 1 year from the date of allotment.

Tax Treatment on Gold Exchange Traded Funds

SBI Gold Fund shall be benchmarked against the domestic price of gold. The price here refers to the morning fixing of Gold by London Bullion Market association (LBMA).

Update Your PayPal account to avoid your account getting limited from receiving payments... (For Indian PayPal Account Users)

In order to comply with the RBI Guidelines, all PayPal users in India receiving payments from cross-border sale of goods and services and withdrawing money, are required to update their PayPal account by adding:

• PAN or Permanent Account Number
• Purpose Code
• Bank account in India

By adding this information, you will continue to receive payments into your PayPal account and your account will not be limited from receiving future payments. You will also be able to withdraw money to your bank account in India. Or, allow your money to be auto-withdrawn into your bank account. If you currently have a PayPal balance, you will also need to update your PayPal account with the information.



FAQ Related to current update:


Why do I need to add a Purpose Code, PAN and bank account in India?

In order to comply with the RBI Guidelines all PayPal users in India must add a Purpose Code, PAN and bank account in India to receive export-related payments into their PayPal account and withdraw money.
  Who needs to add PAN, Purpose Code, bank account in India and update postal address?

• Those who receive payments into their PayPal account and withdraw money, and
• Those who pay for online purchases and currently have balance in their PayPal account.

Note: All customers can continue to use their PayPal accounts with a card linked to it to safely make online purchases.



I have added all of my information why is my account still restricted?Thank you for adding your appropriate information and for offering PayPal to your customers. In keeping with RBI regulations, we need to validate your PAN information which can take 1-2 days to complete. Your account will be updated as soon as we have completed this procedure.
I only use my account to make purchases, do I need to update my account?
No you do not need to do anything to continue using your credit card funded PayPal account to make purchases across the world.

What is a Purpose Code?A Purpose Code is a code you select on the type of commercial activity for which you are receiving export-related payments. In accordance with the RBI Guidelines, selecting a Purpose Code for your transactions is essential.

What if I don’t add a Purpose Code, PAN and bank account in India?In accordance with the RBI Guidelines, all PayPal users in India are required to add a Purpose Code, PAN and bank account in India in order to receive export-related payments into their PayPal account and withdraw money. Your account will be limited from receiving payments, in case you fail to do so.

PayPal customers in India are not able to complete payment for their purchase via PayPal account balance on my website. Why? Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. PayPal currently only offers businesses the ability to accept export related payments.


Will my customers be able to complete their checkout with their PayPal account balance?

 Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. This means that your customers will need to link a credit or debit card to their PayPal account to make purchases with PayPal. This change is to ensure that we continue to comply with the RBI Guidelines.
Source: PayPal India

A Systematic Investment Plan (SIP) Why it is good for you?

 August 23, 2011

Systematic Investment Plan (SIP): a long term disciplined investment technique under which you invest a fixed sum of money on a monthly or quarterly basis in a scheme at the prevailing NAV. This allows you to save and invest regularly while you are earning.

A SIP is like operating a recurring deposit account with a mutual fund. SIP is simply an investment method that enforces disciplined investment practice. You can plan your investment period anything like one year, three years or 5-10 years depending on your financial position and other commitments.

SIP as the name indicates calls for systematic investment. The markets are volatile. There can be ups and downs. A regular investor benefits tremendously from Rupee cost averaging. SIP is an ideal tool for long term investors. It greatly combats the uncertainties of the market and reduces the impact of a highly volatile market condition.

How it works

When you invest a fixed amount every month, the number of mutual fund units you actually buy depends on the market pricing (NAV) at that point in time. Therefore you tend to buy less units when the market moves up, and more units when the market moves down. This means that you are averaging out your cost.

Benefits of investing in mutual fund through SIP route:

· Small, regular investments: A simple way to enter the market by investing small amounts. Small but regular investments go a long way in creating wealth over time

· Rupee cost averaging: Fewer units during rising markets and more units during falling markets, thereby reduces the average cost per unit

· No need for ‘timing the markets’: No need to select the right time and quantity to buy and sell as timing the market is time consuming and risky. It eliminates the need to actively track the markets.

The success of your investment largely depends on the choice of your mutual fund scheme, after a careful analysis of its investment portfolio and past returns. Though past returns are not an assurance for future performance, they provide the investors a rough idea of what type of scheme they are getting locked into.

 

Investing through a SIP ensures that you do not commit the blunder of purchasing units when the market is at its peak. In a SIP the investor buys small amounts continuously over a time frame. Hence the investment will average out over a period of time. This is a simple investment strategy for accumulation of wealth in a disciplined manner over long term period.