InvestorQ : How did Franklin Templeton get such a good response for its BAF NFO, despite the debt fund fiasco in 2020?
manisha Kolvenkar made post

How did Franklin Templeton get such a good response for its BAF NFO, despite the debt fund fiasco in 2020?

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Crowny Pinto answered.
1 month ago
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It may sound a little ironic but Franklin Templeton Mutual Fund (FT MF) has collected close to Rs800 crore for its balanced advantage fund (BAF) new fund offer (NFO). BAFs have been quite popular with SBI MF raisin more than Rs14,000 crore via the BAF last year. Distributors contributed the chunk of the sales for the FT BAF NFO. Even the recent Mirae BAF NFO had bene successful with over Rs746 crore of collections at the NFO. The new fund offer (NFO) had closed for subscription on August 30.

It is rather surprising that investors are still reposing their faith in FT, after most of the investors felt short-changed by the debt fund fiasco at Templeton in April 2020. FIBAF will keep majority of its equity allocation in large caps. Typically, its exposure to large caps will range between 60-85% while mid-caps would account for the balance. On the debt front, FIBAF will invest monies in higher-rated debt securities on the credit risk curve. However, BAF continues to receive rave reviews.

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