Franklin Templeton announces tax-free dividend in Franklin India bluechip fund | india | Hindustan Times
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Franklin Templeton announces tax-free dividend in Franklin India bluechip fund

Franklin Templeton Investments (India), one of the largest mutual fund houses in the country has announced a tax-free dividend of Rs 6/- per unit on the face value of Rs 10/- in its open-end diversified equity fund.

india Updated: Feb 01, 2007 19:08 IST

Franklin Templeton Investments (India), one of the largest mutual fund houses in the country has announced a tax-free dividend of Rs 6/- per unit on the face value of Rs 10/- in its open-end diversified equity fund – Franklin India Bluechip Fund (FIBCF), which is one of the largest equity funds in the country.

The fund was the first mutual fund scheme to be launched in the private sector in 1993. All investors registered in the dividend plan as on February 7, 2007 will receive this tax-free dividend. (Pursuant to payment of dividend, the NAV of the fund would fall to the extent of payout).

Speaking about the fund, Vivek Kudva, President, Franklin Templeton Investments (India) said, "The fund's good performance in the last one year
has led to this higher payout, which includes a special dividend of Rs 3/-.
This is the eleventh dividend distributed by the fund in the last eleven calendar years, in addition to a 1:1 bonus declared in March 2000 (past performance may or may not be sustained in the future). The fund's track record clearly demonstrates how professional fund management can help investors realise good capital appreciation over the long term. Bluechip Fund has always been different from its peers due to its unique attributes - true diversification, focus on quality, liquidity and performance over market cycles. All these factors combine to make Bluechip Fund ideal for any investor's portfolio."

According to KN Sivasubramanian, Senior Vice President - Equity and Portfolio Manager for FIBCF, "While the long term story for India continues to be robust, the strong rally in recent years warrants a disciplined stock selection approach and our approach has been to construct a diversified portfolio of stocks with strong fundamentals that will perform well across market cycles. The large cap companies in Bluechip's portfolio tend to have a momentum of their own due to their ability to attract the best talent, economies of scale and global competitiveness. This focus on market leaders in various sectors has helped the fund deliver consistent performance over the years."

The record date for the dividend is February 7, 2007 and any purchases on or
before this date will be eligible for the dividend. There will be a one-day book closure for the growth and dividend plans on February 8, 2007 and the fund will reopen for fresh purchases and redemptions on February 9, 2007.

Under the dividend reinvestment option, the dividend declared will be reinvested at the NAV of February 9, 2007 and unit holders will be allotted additional units for the dividend amount.

Source: AMFI Website (as on Jan 31, 2007)