Franklin Templeton Investments (India) is launching a new open end fund-of-fund (F-o-F) called FT India Feeder - Franklin US Opportunities Fund (FTIF -FUSOF). It will invest into the Luxembourg-domiciled Franklin US Opportunities Fund (master fund), which invests in US based companies across sectors and market capitalization range.

Launched in 2000, the master fund invests principally in US companies that demonstrate accelerating growth, increasing profitability, or above-average growth or growth potential relative to the overall economy. The New Fund Offer (NFO) will be open from January 17, 2012 to January 31, 2012 during which units will be available at Rs 10 per unit.

Commenting on the rationale for launching the new fund, Harshendu Bindal, President, Franklin Templeton India said, “International diversification is a key ingredient for long-term success of an investment portfolio, but Indian investors traditionally have had a low exposure to international funds due to the relatively better performance of Indian markets. The increased market volatility since 2008 has increased the acceptance of diversification as a key investment tool."

Speaking about the underlying master fund’s strategy, Grant Bowers, Portfolio Manager and Vice President of Franklin Equity Group, commented “The global economy is going through an uncertain phase, but recent data is pointing towards an improving economy in the United States.  US companies emerged from the 2008 crisis with stronger balance sheets, leaner operations all of which make them very competitive in the global marketplace.  The fund invests in US based companies that are clear leaders in their industries and are uniquely positioned to benefit from the expected demand in US as well as strong demand globally for their products and services."