Franklin Templeton India Mutual Fund will merge its Franklin India Feeder – Templeton European Opportunities Fund into the Franklin India Feeder – Franklin US Opportunities Fund. The merger is scheduled to be completed by June 30, 2025.
The company announced the decision in a notice to investors. It said slow economic growth in Europe and broader global market changes have made it harder for European-focused funds to perform well.
What This Means for Investors
From May 29, 2025, the European Opportunities Fund will stop taking new investments. This includes fresh investments and switch-in transactions.
However, ongoing SIPs (Systematic Investment Plans), STPs (Systematic Transfer Plans), and TIDCW plans (Transfer of Income Distribution cum Withdrawal) will continue as usual. No new SIP, STP, or TIDCW registrations will be accepted after that date.
On the day of the merger, the assets of the European fund will be transferred into the US Opportunities Fund. The process will follow valuation guidelines set by SEBI (Securities and Exchange Board of India).
Investors will receive units of the US Opportunities Fund based on their holdings in the European fund. There is no minimum investment requirement for investors receiving units through this merger.
What Should Investors Do?
Investors who choose to remain in the merged scheme will be automatically moved to the Franklin US Opportunities Fund, which focuses on high-growth companies in the United States.
If investors are not comfortable with the change, they have the option to exit the European fund before the merger date. There will be no exit load for those choosing to redeem their units before the merger.
Franklin Templeton has also stated that it will rename the merged fund after the merger. The new name will be shared with investors in due course.
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