Franklin FTSE India UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 19bps

Trading Currency: GBP

Pays Income: False

Listing Date: 28 Jun 2019

Ticker: FRIN

ISIN: IE00BHZRQZ17

This fund provides targeted exposure to the Indian equity market, offering a strategic way to participate in one of the world's fastest-growing major economies. India's growth is underpinned by powerful long-term drivers, including a young and expanding population, a rising middle class fuelling domestic consumption, and a government focused on pro-growth reforms and infrastructure development. By investing in a diversified basket of Indian companies, this vehicle allows for participation in the nation's dynamic economic expansion, moving beyond traditional developed markets to tap into a significant source of potential global growth.

The investment strategy is to physically replicate the performance of an index comprising large and mid-capitalisation Indian stocks. This approach provides broad representation across key sectors of the Indian economy, such as financials, information technology, energy, and consumer discretionary. The underlying index employs a capping methodology, which limits the weight of any single constituent. This feature enhances diversification and reduces concentration risk, preventing the portfolio's performance from being overly dominated by a few corporate giants. This structure ensures a more balanced exposure to the breadth of opportunities within the Indian market.

For investors, this product can serve as a core emerging market holding or a tactical satellite position to capture India-specific alpha. It is a cost-effective and transparent tool for gaining access to a market that can be complex for foreign investors to navigate directly. Given its focus on a single emerging country, the investment is suitable for those with a long-term horizon and a higher tolerance for risk, aiming to capitalise on the structural growth story of the Indian subcontinent.