Today itself there is an article on Templeton India Equity Income fund on Sify Business:
Templeton India Equity Income Fund is an open-ended diversified equity fund that has an investment objective to provide a combination of regular income and long-term capital appreciation by investing in stocks that have an attractive dividend yield or the potential for impressive payouts.
The fund follows a value style of investing. It provides portfolio diversification by investing in foreign securities. Launched in 2006, the fund has posted stable returns and is suitable for investors having a long-term investment horizon.
The fund\\`s management team is headed by J Mark Mobius, who has great experience in investing in overseas markets. He also manages the Templeton India Growth Fund, another value-oriented equity diversified fund from the fund house. Currently, the fund manager is managing a fund size of Rs 1,227 crore.
The fund\\`s performance has been pretty steady since its launch. It has outperformed its benchmark (BSE 200) as well as its open end equity diversified peer group average by huge margins. It returned -23.06% in the period as compared with -40.87 for the benchmark and -40.07 for the category average.
It has also fared pretty well in longer periods. In its past two years, it grew at 19.39%, placing seventh in its category.
The scheme\\`s strong performance can be attributed to its value orientation. It seeks to invest in high-dividend-yielding stocks and has included local large-cap stocks such as ONGC, SAIL and Hindalco Industries in its top five holdings. With its expertise in overseas markets, the scheme has exposure in high dividend yielding companies like Lukoil Holding, Samsung Heavy Industries, Alfa SA and United Microelectronics Corporation among others.
On an average, in the past one year, the scheme\\`s allocation to the overseas equity markets has been 28.96% of its portfolio. The fund is not a frequent churner of stocks and believes in the buy and hold strategy. This shows a focused approach to achieve long-term capital appreciation.
The fund is aggressive in its equity allocation and has maintained an average allocation of 97.59% in the past one year. In fact, in May 2008, the scheme has allocated just 0.36% of its assets in debt and cash and cash equivalent. The scheme\\`s value investment in the domestic markets has been around 41% on an average in the past one year. The scheme\\`s 12 months trailing PE ratio is also far below that of its benchmark, which gives it a good value proposition.
The scheme is diversified across 25 sectors, with the top five sectors accounting for 50% of the total portfolio. Finance, oil & gas, and steel are the top sectoral holdings of the scheme.
With its value orientation, the scheme is among the less volatile funds and, although it has produced marginal returns during the bullish phase, it has managed to restrict its losses in the downside as well.
The other benefit is that the fund offers diversification by investing in overseas markets for which the fund has huge experience in researching emerging markets. The scheme is suitable for conservative investors with an investment horizon of more than 3 years.
Does it mean that along with dis-continue SIP in Blue Chip, opt for this one? |
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Moneycontrol 
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