Templeton To Float Tax-Saving Scheme, Money Mutual

Templeton Asset Manage-ment, which manages investments worth $1600 million in the Indian capital market, will launch two more funds a tax saving scheme and a money market mutual fund (MMMF) - by early 1998. The, move seen for the first time in the mutual fund industry, will widen Templetons basket of schemes.

Templeton has started selling its existing schemes through brokers, thus becoming the only mutual fund which does not sell its product directly to the investing public. The AMC has undertaken an extensive training programme for brokers in key metros about the scheme structures and objectives, Vijay Advani, CEO of Templeton said.

 

Currently 8 brokers are being trained to ensure quality management of assets under existing Sebi regulations relating to MFs.

According to Advani, Templeton is now placing its ducts into place with the streamlining of the marketing (maintaining quality of assets), sale and performance (returns) of funds.

Commenting on its MMMF scheme, sources said the move was to create a strong product which would allow diversification within the existing set up. Most MMMFs have virtually operated in a fashion similar to bond schemes. Templeton will meet RBI officials shortly to discuss details of the proposed MMMF.

The tax saving scheme would be an open-ended fund and would be part of the long-term strategy being followed by Templeton. On the operational side, the AMC is now ensuring that audits are carried out on a quarterly basis. A direct link has also been maintained through an official to deal with the trustee company.

Templeton is also preparing the broad fund structure which would allow for investments in overseas markets. While the guidelines for the same as yet to be set out by the Securities and Exchange Board of India (Sebi), Templeton may suggest that investments in this form could be made through existing local schemes.

Advani, who is a member of the sub-committee to frame the guidelines, has suggested that there should be stringent norms enforced. Further, the investor-broker link must be ensured as a next level of records to be maintained.