Franklin Templeton Introduces First Outbound Fund from GIFT City for US Stock Investments

Franklin Templeton India has launched the Franklin US Equity IFSC Fund, its first outbound fund from Gujarat International Finance Tec-City (GIFT City). The scheme will invest in US stocks through an overseas fund, the FTGF Putnam US Research Fund, managed by Putnam Investments. 

The new fund offer (NFO) opened on November 11 and will close on December 11, 2026. Investors must make a minimum investment of $5,000. Additional investments will be accepted in multiples of $500. December 10 is the last date for fund credit. 

Fund to Follow Active Stock Selection 

The underlying fund invests in US companies selected from across the S&P 500 Index. It follows an active investment strategy, meaning the portfolio will be based on the fund manager's research and stock selection rather than matching the index. 

The strategy uses fundamental research to assess individual companies and also considers risk management while selecting stocks. Its stated objective is long-term capital appreciation through a diversified portfolio of US equities. The S&P 500 Index will be the benchmark. 

As of September 30, 2026, the master fund had assets under management of more than $10.6 billion. The investment strategy has been running for over 30 years. 

Investment Plans and Exit Load 

The Franklin US Equity IFSC Fund is a retail outbound fund managed by Franklin Templeton Asset Management (IFSC) Private Limited. Investors can purchase or redeem units on a daily basis, with a cut-off time of 3 pm IST. 

The scheme has two plans. Class A is for investments made through distributors or placement agents, while Class B is meant for direct investments. 

Investors redeeming their units within 24 months of allotment will have to pay an exit load of 2% of the redemption amount. No exit load will apply after 24 months. 

Franklin Templeton's GIFT City Presence 

Franklin Templeton set up its fund management entity in GIFT City in 2024. The latest launch is its first outbound product from the centre. 

Avinash Satwalekar, President of Franklin Templeton India, said the fund would rely on individual stock selection rather than broad sector-level investment decisions. Kiran Voleti, Principal Officer of Franklin Templeton Asset Management (IFSC), said the scheme could be part of an investor's core US equity allocation. 

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Conclusion 

The launch gives Indian investors another route to invest in US equities through GIFT City. The fund's returns will depend on its stock holdings, US market performance and currency movements. 

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. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.