Description :
Published on Feb 11, 2019
TRANSCRIPT:
Hi guys, so when we spoke about the topics for the year 2019 we mentioned about global funds and within that specifically about a fund, Franklin India feeder US opportunities this fund is a very interesting pick since it actually allows you as an investor to diversify beyond Indian Stocks and at the same time participate in the growth story in the US .
Let’s take a look at the KEY FEATURES that have actually made this fund make it to our top list in the year 2019:-
- Stock picking ability of the underlying fund-so the fund seems to invest pretty well into stocks based out of the US especially concentrated towards technology and pharmaceutical stocks in the US the interesting part is this fund does not have any market cap bias and it completely focused on a bottoms-up approach wherein it lends a higher premium to a certain factors such as the corporate earnings, competitive edge of the company and the sustainability of the business model that these companies operate in so this feature puts it on top of the list.
- Diversification and internal hedging so the Franklin India feeder US opportunities fund invests in US base securities and acts as a fantastic tool for Indian Investors to diversify their portfolio even outside India into the US equities so this acts as an internal hedge and a quotient towards head weights that our Indian equities might face due to domestic reasons, a key example would be a flight of foreign money from Indian Equities back to the US equities due to certain geopolitical tensions that may arise within regions in India.
- Strong value proposition held by the US economy -the US economy numbers are looking pretty favourable as of late, so the wage rate has gone up, the unemployment rate has gone down the production and manufacturing index shows a certain degree of strengthing of the US economy so all these put together and also the other several facets of the US economy we see a very robust economy in the development and a very strong growth proposition, so we believe the Indian investors also have a fair chance at participating in the US growth story through this fund.
RED FLAGS
- One key thing is to understand that this is a fund of fund and hence could be taxed like any other debt fund in India although it is an equity fund.
- One needs to understand that this fund has all the risks associated with the US equity markets and along with that it also carries a forex risk in terms of the USD-INR foreign currency valuation fluctuating over a period of time due to n number of reasons.
these are the key things an investor should bear in mind.
WHO CAN INVEST?
- This fund is suitable for investors who want to diversify their portfolio even outside India and want to allocate a small portion to the US equity markets.
- This is also for the investors who are very keen on playing the US growth story and at the same time, have a considerably high-risk appetite.
HOW TO INVEST?
The easiest way to invest in this fund is through the Fisdom app, all you need to do is open your Fisdom app click on the top equity mutual fund section and then all you need to do is type out the fund name as Franklin India feeder US opportunities fund, and you will be done investing within less than 2 minutes.
so as I always say the best time to invest is now and the best way to do it is through Fisdom .