Mumbai, Jan 15: Templeton Mutual Fund, an investment arm of Franklin Templeton group, would be launching an open-ended index-based passive equity linked savings scheme (ELSS) - Franklin India Index Tax Fund and an open-ended income fund - Liquid Plus. The Mutual Fund has filed the offer documents with the Securities and Exchange Board of India (Sebi) to that effect. Franklin India Index Tax Fund, tracking S&P CNX Nifty, seeks to invest in companies whose securities are included in the Nifty and attain results commensurate with the S&P CNX Nifty Index.The minimum subscription amount for the scheme would be Rs 500 and in multiples thereof. The scheme would offer units for sale and redemption after the completion of a lock-in-period of three years from the date of allotment of units at NAV based prices on an ongoing basis.
The face value of the unit is Rs 10. The fund would also offer an option of systematic withdrawal and transfer plan available to investors, which is subject to completion of the lock-in period.
The investment portfolio of Liquid Plus would comprise mainly of high quality money market and debt instruments. The face value of the unit is Rs 10. The income from the units is fully exempted from tax at the hands of the investors.
Units are not subject to wealth tax and gift tax. There would be no tax deduction at source on redemption, irrespective of the amount redeemed for resident investors.
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