FLIN Profile
The Franklin FTSE India ETF is designed to offer investors targeted exposure to the Indian equity market by tracking the FTSE India Capped Index. Under normal market conditions, the fund invests at least 80% of its assets in the component securities of this index and in depositary receipts representing these securities. This approach is intended to closely align the fund's performance with that of the FTSE India Capped Index, providing investors with a focused investment in prominent Indian companies.
The FTSE India Capped Index, a variant of the FTSE India Index, aims to measure the performance of large- and mid-cap stocks listed on Indian exchanges. This index employs a capping mechanism that limits the maximum weight of individual stocks, thereby ensuring a more balanced representation of the Indian market. The capping strategy helps prevent any single stock from disproportionately influencing the index’s performance, thereby enhancing diversification across the market.
As a non-diversified fund, the Franklin FTSE India ETF concentrates its investments in a specific segment of the market, focusing on large- and mid-cap Indian companies. These companies typically span key sectors such as information technology, financial services, and consumer goods, reflecting the diverse and dynamic nature of the Indian economy. This concentrated focus provides investors with direct exposure to the growth and economic developments in India, a rapidly expanding and influential emerging market.
Investing in the Franklin FTSE India ETF offers a strategic opportunity to capitalize on India's economic growth and market potential. However, the fund's concentration on a limited number of sectors and companies may increase its exposure to specific market risks and volatility. Investors should carefully evaluate how this fund fits within their broader investment portfolio and consider the associated risks and opportunities inherent in the Indian market.
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