franklin india pension plan (fipep)

FRANKLIN INDIA
PENSION PLAN (FIPEP)
This is a simple and performing scheme which is eligible for distribution by new Cadre of Distributors.
As of May 31, 2017
INVESTMENT OBJECTIVE
PLANNING FOR RETIREMENT
An open end tax saving scheme whose objective
Planning for your retirement is one of the most critical aspects of financial planning.
If you wish to retain your financial independence and maintain a comfortable lifestyle
even when you are no longer earning, it becomes imperative for you to start planning
for your retirement as early as possible.
is to provide investors regular income under the
Dividend Plan and capital appreciation under
the Growth Plan
START EARLY
PRODUCT LABEL
This product is suitable for
investors who are seeking*:
Moderate
Mo
de
ra
te
L ow
A hybrid fund
investing upto
40% in equities
and the balance
in high quality
fixed income
instruments
Riskometer
ly
Long term
capital
appreciation
It s simple. The more time you give your money, the more it will grow. For example,
`100,000 invested for 10 years at 8% p.a will grow to just `215,892 while the same
money invested for 20 years grows to `466,096. See the difference?
LOW
HIGH
Investors understand that their principal will be at Moderately High risk
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Key Highlights:
BEAT INFLATION
Consider the cost of a loaf of bread. Bread that used to cost less than `10 around 10
years back, today costs around `20. Not just that, in the next 10-20 years, this will
keep going up and could reach as high as `50 per loaf. Unthinkable but yes, that is
the effect of inflation on your purchasing power it can erode the value of your money
over time. Consider an example: see what inflation can do to your `1,000 over time.
What you can buy for the same `1,000 today will cost a lot more in the years to come:
An open end tax saving scheme with a
lock-in period of 3 financial years that
gives you the flexibility to invest
whenever you have a surplus unlike
some of the other retirement products
`6,727
`4,322
`1,629
`2,653
`2,594
20 Years
10 Years
Inflation Rate 5%*
While debt component of the portfolio
can provide stability, equity can help
enhance the value of your retirement
corpus
Tax deduction upto `1.5 lac per year
under Section 80C on investment
amount
`17,449
Impact of Inflation on Rs.1000 worth of Goods in Future
30 Years
Inflation Rate 10%* (* Assumed)
CHOOSE THE RIGHT INVESTMENT
Where you invest matters most when you wish to build a sizable retirement corpus. In
fact, just a small difference in your long-term investment performance can make a big
impact on your retirement corpus. This boost to your investment can come by investing
a portion of your money into equities an asset class that may be volatile in the short
term but can be highly rewarding in the long term. Consider the example given below.
Investing `10,000 every year since the age of 30 until the age of 58 at different rates
of assumed return of 8%, 12% and 15% p.a can give highly varying returns.
`5,736,280
No entry loads / up-front charges and
hence units are allotted for 100% of
invested amount
Equity exposure (upto 40%) could give
your investment the potential to stay
ahead of inflation
8%
12%
15%
`3,014,733
`280,017
`231,331
`179,771
At age 40
`1,366,316
`915,026
`544,568
At age 50
`1,309,671
At age 60
Given the circumstances, an investment option that has the potential to beat inflation
in the long run and as well as build a sizeable retirement corpus would be the ideal
choice to invest in.
PRESENTING FRANKLIN INDIA PENSION PLAN (FIPEP)
Franklin India Pension Plan (FIPEP) is a central government notified pension scheme
from the private sector that can help you build your retirement corpus. The fund
invests up to 40% of its assets in the stock market and the remaining in debt
instruments. FIPEP gives you the flexibility to invest whenever surplus money is
available. There is no restriction on maximum investment amount.
Portfolio Characteristics - DEBT PORTION
TOP HOLDINGS
Average maturity
:
9.06 years
Company Name
Yield to maturity
:
7.71%*
Debt
Rating
Modified Duration
:
5.06 years
6.79% GOI 2029
SOVEREIGN
5.11
State Bank Of India
CRISIL AA+
4.92
DLF Promenade Ltd
CRISIL AA(SO)
4.14
* Pre fund expenses. YTM is the weighted average yield of
portfolio based on the security level yield. Security level yield for
securities with maturity greater than 60 days is the simple
average of yield provided by AMFI designated agencies and for
securities with maturity up to 60 days it is the last traded
/valuation yield.
Other Current Asset
0.03%
Equity
0.39%
Debt
0.58%
% of Assets
Tata Power Co Ltd
ICRA AA
3.79
Tata Steel Ltd
BWR AA
3.79
Equity
Sector
HDFC Bank Ltd.
Banks
4.20
Axis Bank Ltd.
Banks
2.59
State Bank of India
Banks
2.24
Infosys Ltd.
Software
1.91
Dr. Reddy's Laboratories Ltd.
Pharmaceuticals
1.56
All portfolio holdings are subject to change. The information stated above does not constitute an investment advice or
recommendation to subscribe or transact in these securities.
ASSET COMPOSITION - EQUITY PORTION
Minerals/Mining
FUND DETAILS
Fund Manager(s):
Debt Portfolio
Sachin Padwal-Desai
Umesh Sharma
Equity Portfolio
Lakshmikanth Reddy
Date Of Allotment:
March 31, 1997
0.02%
Media & Entertainment
1.78%
Construction Project
1.82%
Industrial Products
1.88%
Chemicals
1.92%
Transportation
2.28%
Retailing
2.48%
Cement
2.61%
Petroleum Products
2.86%
Gas
3.20%
Auto Ancillaries
3.30%
Telecom ‐ Services
3.70%
Software
Pharmaceuticals
Auto
Load Structure:
Entry Load: Nil
Exit Load (Subject to the completion of
lock-in-period and minimum target
investment): 3% if redeemed before the
age of 58 years, NIL if redeemed after the
age of 58 years
Consumer Non Durables
6.80%
7.72%
9.81%
10.06%
Banks
37.77%
WHY FRANKLIN TEMPLETON ?
Franklin Templeton Worldwide
Premier global investment management organization with over 65 years of global
investment experience
Headquartered in San Mateo, California with offices in 35 countries worldwide
Over 600 investment professionals managing nearly USD 741.0 billion in assets for
over 24 million investor accounts (as of April 30, 2017)
Franklin Templeton in India
Established office in 1996
Extensive experience in both equity and debt across market cycles: over 20 of our
funds have a performance track record of over 10 years
Focus on local needs backed by global expertise
Lock - in Period:
Completion of 3 full financial years
Minimum Investment:
`500 and in multiples of `1
Minimum target investment:
`10,000
Fund Size:
` 409.12 Cr
The upfront commission on investment made by the investor, if any, shall be paid to the ARN Holder (AMFI registered distributor) directly by the investor, based
on the investor s assessment of various factors including service rendered by the ARN Holder.
Mutual Fund investments are subject to market risks, read all scheme related documents
carefully. All investments in FIPEP are subject to a lock-in for a period of 3 financial years. The Trustee, AMC, their directors
or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up
before the completion of the lock-in period.
Copyright © 2014. Franklin Templeton Investments. All rights reserved.
Registered Office: Franklin Templeton Asset Management (India) Pvt Ltd.
Indiabulls Finance Centre, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone (West), Mumbai 400 013
[email protected]
www.franklintempletonindia.com
Investors: 1800 425 4255, 6000 4255
Distributors: 1800 425 9100, 6000 9100
Mobile phones by prefixing the local city code; local call rates apply for both numbers. Helpline available from 8 a.m. to 9 p.m. Monday to Saturday