Franklin Templeton India Mutual Fund has announced the merger of two of its international schemes — Franklin India Feeder – Templeton European Opportunities Fund and Franklin India Feeder – Franklin U.S. Opportunities Fund.
The Templeton European Opportunities Fund will be the merging scheme, while the Franklin U.S. Opportunities Fund will be the surviving scheme.
The merger will take effect from June 30. The fund house informed its unitholders through a notice-cum-addendum.
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According to the notice-cum-addendum, “Pursuant to the global landscape for European funds and sluggish European macroeconomic factors, and in the interest of unitholders, Franklin India Feeder – Templeton European Opportunities Fund (FIF-TEOF) shall be merged with Franklin India Feeder – Franklin U.S. Opportunities Fund (FIF-FUSOF) effective June 30, 2025.”
The sale of units of FIF-TEOF (including switch-ins) will be suspended effective May 29, 2025, except for ongoing Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), and Transfer of Income Distribution cum Withdrawal Plans (TIDCW).
Registration of new SIP/STP/TIDCW will also be suspended from May 29, 2025.
The requirement of minimum application amount for fresh and additional purchases, as mentioned in the Scheme Information Document, will not apply to units of the surviving scheme allotted to investors of the merging scheme due to the merger, the addendum stated.
Further, the portfolio of the merging scheme as of the merger date, valued per SEBI guidelines, will be merged with the portfolio of the surviving scheme. For investors who opt to continue in the surviving scheme, any existing registration for SIP, STP, TIDCW, or Systematic Withdrawal Plan (SWP) under the merging scheme will automatically continue under the surviving scheme for the remaining tenure.
If investors do not wish to continue systematic transactions under the surviving scheme, they must notify Franklin Templeton Mutual Fund in writing by 3 PM on June 27, 2025.
Unitholders who do not exercise the exit option by June 27, 2025, will be deemed to have consented to the proposed merger.
Accordingly, investors in FIF-TEOF are given an option to exit at the prevailing Net Asset Value (NAV) without any exit load, if they do not wish to approve the merger or continue in the surviving scheme.
This no-load exit window will remain open from May 29, 2025, to June 27, 2025 (both days inclusive).
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The fund house further informed that the name of the surviving scheme, Franklin India Feeder – Franklin U.S. Opportunities Fund, will be changed to Franklin U.S. Opportunities Equity Active Fund of Funds, effective May 30, 2025.
All other terms and conditions outlined in the Scheme Information Document and Key Information Memorandum, read along with any addenda issued from time to time, will remain unchanged.
As of the latest data, Franklin India Feeder – Templeton European Opportunities Fund and Franklin India Feeder – Franklin U.S. Opportunities Fund had assets under management (AUM) of Rs 17.45 crore and Rs 3,511 crore, respectively.
In addition to these two international schemes, the fund house also manages one more international offering — the Franklin Asian Equity Fund.
The Templeton European Opportunities Fund will be the merging scheme, while the Franklin U.S. Opportunities Fund will be the surviving scheme.
The merger will take effect from June 30. The fund house informed its unitholders through a notice-cum-addendum.
Also Read | Over 260 debt mutual funds beat fixed deposits rate in 2 years. Should you switch?
According to the notice-cum-addendum, “Pursuant to the global landscape for European funds and sluggish European macroeconomic factors, and in the interest of unitholders, Franklin India Feeder – Templeton European Opportunities Fund (FIF-TEOF) shall be merged with Franklin India Feeder – Franklin U.S. Opportunities Fund (FIF-FUSOF) effective June 30, 2025.”
The sale of units of FIF-TEOF (including switch-ins) will be suspended effective May 29, 2025, except for ongoing Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), and Transfer of Income Distribution cum Withdrawal Plans (TIDCW).
Registration of new SIP/STP/TIDCW will also be suspended from May 29, 2025.
The requirement of minimum application amount for fresh and additional purchases, as mentioned in the Scheme Information Document, will not apply to units of the surviving scheme allotted to investors of the merging scheme due to the merger, the addendum stated.
Further, the portfolio of the merging scheme as of the merger date, valued per SEBI guidelines, will be merged with the portfolio of the surviving scheme. For investors who opt to continue in the surviving scheme, any existing registration for SIP, STP, TIDCW, or Systematic Withdrawal Plan (SWP) under the merging scheme will automatically continue under the surviving scheme for the remaining tenure.
If investors do not wish to continue systematic transactions under the surviving scheme, they must notify Franklin Templeton Mutual Fund in writing by 3 PM on June 27, 2025.
Unitholders who do not exercise the exit option by June 27, 2025, will be deemed to have consented to the proposed merger.
Accordingly, investors in FIF-TEOF are given an option to exit at the prevailing Net Asset Value (NAV) without any exit load, if they do not wish to approve the merger or continue in the surviving scheme.
This no-load exit window will remain open from May 29, 2025, to June 27, 2025 (both days inclusive).
Also Read | Equity mutual funds saw highest ever inflows of Rs 4.17 lakh crore in FY25: AMFI
The fund house further informed that the name of the surviving scheme, Franklin India Feeder – Franklin U.S. Opportunities Fund, will be changed to Franklin U.S. Opportunities Equity Active Fund of Funds, effective May 30, 2025.
All other terms and conditions outlined in the Scheme Information Document and Key Information Memorandum, read along with any addenda issued from time to time, will remain unchanged.
As of the latest data, Franklin India Feeder – Templeton European Opportunities Fund and Franklin India Feeder – Franklin U.S. Opportunities Fund had assets under management (AUM) of Rs 17.45 crore and Rs 3,511 crore, respectively.
In addition to these two international schemes, the fund house also manages one more international offering — the Franklin Asian Equity Fund.
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