Indian investors can now take a call on US equities by investing in new fund that will invest in a $2.34 billion US fund.

Franklin Templeton on Tuesday announced the launch of a new open-ended fund of funds called FT India Feeder-Franklin US Opportunities Fund. The new fund offer will be open from January 17 to January 31.

The fund will invest into the Luxembourg-domiciled Franklin US Opportunities Fund, which invests in US-based companies across sectors and market capitalisation range.

Launched in 2000, the master fund invests in US companies which have above average growth and profitability relative to the overall economy.

The fund has 89 stocks in its portfolio and 75 per cent of them are large cap stocks.

Top 10 holdings of US Opportunities Fund are Apple (4.85 per cent), Master Card (3.36 per cent), Precision Cast parts (2.84 per cent), Celanese (2.52 per cent), Qualcomm (2.41 per cent), SBA Communications (2.27 per cent), Google (1.93 per cent), BlackRock (1.75 per cent), Trimble Navigation (1.65 per cent) and Praxair (1.57 per cent).

This is first actively-managed fund for US to be launched in India, Franklin Templeton officials said.

Grant Bowers, portfolio manager and vice-president of Franklin Equity Group said, “Recent data is pointing towards an improving in the United States. US companies emerged from the 2008 crisis with stronger balance sheets, leaner and they have all time high cash on their balance sheet, ideal for mergers and acquisitions.”

Harshendu Bindal, president, Franklin Templeton India said, “The new fund offer provides clients an opportunity to diversify across asset class, gains can be made not only in India but outside as well.”

“The increased market volatility since 2008 has increased the acceptance of diversification as a key investment tool. Indian investors, traditionally, have had a low exposure to international funds due to the relatively better performance of Indian markets,” Bindal said.

Speaking about currency fluctuation risk at the time of redemption, Bindal said, “Since these companies have global operations and investors from across the world, currency fluctuations are factored in their earnings also.”

The fund has been sold to retail investors in the US as well as close to 30 other countries.

raviranjan@mydigitalfc.com