Franklin Templeton Fund Merger: Key Moves for Investors

Franklin Templeton India Mutual Fund is merging its Templeton European Opportunities Fund into the Franklin US Opportunities Fund by June 30, 2025. If you're an investor in either scheme—especially the European one—here’s what you need to know and do.

What Should Investors Do Before the Franklin Templeton Fund Merger?

If you are an existing investor in the European Opportunities Fund, here’s what you need to know:

• You don’t need to take any action. Your holdings will automatically shift to the Franklin US Opportunities Fund.
• The unit allocation will be proportional to your current investment.
• Minimum investment rules of the US fund will not apply to you after the merger.
• You will get exposure to US-based growth companies, which form the core of the Franklin US Opportunities Fund’s portfolio.

Option to Exit Without Penalty

If you're not comfortable with the merger or prefer to exit the European fund, you can do so before June 30, 2025, without paying any exit load.

Franklin Templeton has also stated that the US Opportunities Fund will be renamed after the merger. More information will be shared closer to the date.

Read more on: SIP Calculator: How a ₹4,000 Monthly SIP Can Help You Reach ₹60 Lakh. 

What Will Change from May 29? 

Starting May 29, 2025, the European Opportunities Fund will:

• Stop accepting new investments, including switch-ins.
• Discontinue new registrations for SIPs, STPs, and TIDCW (Transfer of Income Distribution cum Withdrawal Plans).
• Continue existing SIPs, STPs, and TIDCW until the merger date.

On June 30, the European fund’s portfolio will be merged with the US Opportunities Fund, and all valuations will follow SEBI guidelines.

Why is the Franklin Templeton Merger Happening?

The European fund has struggled due to sluggish economic performance in the region. In contrast, the US fund is positioned around high-growth American companies, making it more aligned with current investor sentiment and long-term global trends.

Conclusion 

The merger of Franklin Templeton’s European fund into its US fund is a reflection of broader market trends. While it limits access to European markets, it offers investors an opportunity to shift to the more resilient and high-growth US equity market. Existing investors have a clear choice: stay and transition to a US-focused fund or exit without penalty before the merger date.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.