Long term investments: This mutual fund gave over 100% return in five years

Looking for long term investments? Mutual Funds have time and again proved as the best investment option. 

One such fund which has given robust returns in long term is Franklin India Feeder – Franklin U.S. Opportunities Fund (Growth). The fund belongs to Equity asset class from Franklin Templeton Mutual Fund family. 

The fund in the last five years has given absolute return of 102.65%. In 2012, the fund had net asset value of 11.17. Presently, the NAV is 22.62. The fund’s asset size is Rs 566.03 crore.

The open ended fund  seeks to provide capital appreciation by investing predominantly in units of Franklin U. S. Opportunities Fund, an overseas Franklin Templeton mutual fund, which primarily invests in securities in the United States of America.

When we say open ended fund, which means these are funds in which units are open for purchase or redemption through the year. All purchases/redemption of these fund units are done at prevailing NAVs. These funds are preferred since they offer liquidity to investors.

This fund principally invests in small, medium and large capitalisation U.S. companies with strong growth potential across a wide range of sectors.

The minimum investment requirement is just Rs 5000. An investor has an option of Systematic Investment Plan (12 cheques each of Rs.500/- or more or a minimum of 6 cheques each of Rs.1,000/- or more), Systematic Transfer Plan and Systematic Withdrawal Plan, to enter the fund. 

Apart from this, what makes this fund even more profitable is its tax benefits. According to Franklin Templeton India, the fund has three tax benefits:

  • Long term capital gains (LTCG) tax @20% (plus surcharge, if applicable and cess) with indexation if units held for more than 36 months
  • Short term capital gains (STCG) tax at the income tax slab rate if units are held for less than 36 months
  • Investor does not pay any tax on dividends but a Dividend Distribution Tax (DDT) is deducted at source @28.84% (25% + 12% surcharge + 3% education cess)

Disclaimer: This story is for informational purposes only and should not be taken as an investment advice.


Leave a Reply

Your email address will not be published. Required fields are marked *


six + sixteen =