Franklin Build India Fund FBIF NFO: Review Analysis & Details

It seems like the various fund houses have suddenly found a new keyword - Infrastructure and all are attempting to lure the investors into believing that infrastructure sector is set to grow and hence it is the right time for investors to invest their money into Infrastructure Secotr (and right time for the mutual fund houses to come out with Infrastructure funds).

High on the heels of Reliance, which recently concluded the NFO or New Fund Offer for its Reliance Infrastructure Fund: (Review & Analysis of NFO), the Franklin Templeton Investments (India), which is another big name in Mutual fund industry, has come out with its Infrastructure focussed fund called the Franklin Build India Fund FBIF NFO. In this article, we will analyse how good is this Franklin Build India Fund NFO, whether this Franklin Build India Fund offers anything new or unique for the investors and whether the investors should invest in Franklin Build India Fund FBIF.
Let's begin with some details about Franklin Build India Fund FBIF.
What are the NFO dates for Franklin Build India Fund FBIF?
The NFO for Franklin Build India Fund will open on July 10, 2009 and will close on August 8, 2009.

What is so unique about this Franklin Build India Fund ?
There is nothing so special or unique about this fund. It has the title "Build India" - and is attempting to generate returns from investing in companies or stocks for Infrastructure, Financial Services, Social Development, Agriculture and Resources. Basically, they have covered everything and all the sectors.
They claim that India (still) is the fastest growing economy of the world and the above listed sector specific companies and stock will be beneficial for investments. Hence they have come out with this NFO.

Nothing so different about the investment strategy:
Equities and Equity-linked instruments: 70%-100% (Infrastructure-related companies investment will be: 65%-100%, Other companies: 0%-35%); So major focus will be on infrastructure.
Debt securities (including government securities & securitised debt) and Money Market Instruments: 0%-30% [including investments in Foreign Securities as may be permitted by SEBI/RBI up to 35% of the net assets of the scheme, exposure in derivatives up to a maximum of 50%].

What is the Load Structure (Entry Load & Exit Load) for Franklin Build India Fund ?
Load Structure: Entry Load: Less than Rs.5 crores - 2.25%, Rs.5 crores & above - Nil
However, in accordance with SEBI rules, Zero entry load will be charged for direct applications;
Exit Load: Less than Rs. 5 crores - 1% if redeemed within 1 year of allotment, Rs.5 crores and above - 1% if redeemed within 6 months of allotment.

Franklin Build India Fund NFO offer price: Rs. 10 per unit plus applicable load, if any.

Final Thoughts about the Franklin Build India Fund?
Nothing so special or unique about the Franklin Build India Fund - same asset allocation promise, same long only investment strategy, same load structure as like the other fund. in the budget, there were huge expectations that the infrastructure sector will be given a big boost, but we all know what the budget has offered - it was a cautious approach budget. Infra Companies like IVRCL stock prices were beaten up severly immediately after the budget. So the investor has to take a call - whether the infrastructure sector & its stocks and companie will deliver handsome returns is a call in the future