Franklin Templeton has launched its first outbound fund through Gujarat International Finance Tec-City (GIFT City), offering Indian investors exposure to US equities through an actively managed investment strategy.
The Franklin US Equity IFSC Fund is structured as a feeder fund that will invest in the FTGF Putnam US Research Fund, its overseas master fund. The minimum investment is $5,000, with additional investments permitted in multiples of $500.
The new fund’s initial offer period runs from November 11 to December 11, 2026. The fund credit cut-off date is December 10.
How will the fund invest?
The master fund is managed by Putnam Investments, a Franklin Templeton company, and follows an active US equity investment strategy. It aims to generate long-term capital appreciation by investing in a diversified portfolio of US companies, selecting stocks from across the S&P 500 Index.
Rather than simply replicating the S&P 500, the strategy relies on fundamental research and individual stock selection. It also focuses on risk management, with the objective of adding value through company-specific investment decisions rather than broad sector calls.
The master fund had assets under management of more than $10.6 billion as of September 30, 2026. According to Franklin Templeton, the strategy has a track record of more than three decades.
The fund will use the S&P 500 Index as its benchmark.
Investment structure and key features
The Franklin US Equity IFSC Fund is classified as a retail outbound fund and will be managed by Franklin Templeton Asset Management (IFSC) Private Limited.
Investors can subscribe to and redeem units on a daily basis, with a cut-off time of 3 pm IST.
The fund has two investment plans:
- Class A: Investments made through distributors or placement agents.
- Class B: Direct investments.
An exit load of 2% will apply if units are redeemed within 24 months of allotment. Redemptions after 24 months will not attract an exit load.
Franklin Templeton’s GIFT City strategy
The launch expands Franklin Templeton’s GIFT City platform beyond its existing offerings into outbound investment products, allowing Indian investors to access overseas markets through a fund domiciled in the international financial services centre.
The fund house said the offering is intended to provide international diversification through exposure to US companies.
Avinash Satwalekar, President, Franklin Templeton India, said the strategy would seek to generate value primarily through stock selection rather than broad sector-level calls.
Kiran Voleti, Principal Officer, Franklin Templeton Asset Management (IFSC) Private Limited, said the fund could serve as a core US equity allocation for investors seeking international diversification.
Franklin Templeton established its GIFT City fund management entity in 2024. The latest launch marks its first outbound fund offering from the centre.
What investors should consider
The fund provides exposure to US equities, but its active investment approach means returns will depend on the performance of the underlying stocks selected by the fund manager. Its performance may differ from that of the S&P 500 benchmark.
Investors should also account for currency movements between the US dollar and the rupee, along with overseas market risks, before investing. The minimum investment requirement of $5,000 is another consideration.