Templeton mutual fund has reported a 50% jump in fresh collections between April and mid-June. The fund now has over Rs 3.75 bn under management.

Templeton is a part of the Franklin Templeton Group. It currently operates three funds - growth, debt and liquid. The fund has recently launched a Government Securities fund, which will invest in government paper.

The rise in mobilizations at Templeton follows similar announcements by other leading mutual funds, which are also witnessing this surge in collections.

With the aim of reviving mutual fund industry, the finance Bill of FY2000 proposed to fully exempt from income tax all income from UTI and other Mutual Funds in the hands of the investor. The open ended mutual fund schemes, including US-64 scheme, were to be exempt from the 10% dividend tax for three years, if the equity investments in such schemes exceeded 50%. These incentives coupled with the relatively better performance of the mutual funds have enabled mutual funds to attract higher inflows.

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