 "Franklin India launches medium- to long-duration fund: Who should invest")
Franklin Templeton India on Tuesday launched an open-ended debt fund that will invest in a diverse portfolio of sovereign and high-quality corporate bonds.
New fund offer (NFO) for Franklin India Medium to Long Duration Fund (FIMLDF) will be available until September 17, 2024, with units priced at Rs 10 each. The fund is designed for people with an investment horizon of three years or more.
FIMLDF will focus on debt and money market instruments, including non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills, and government securities. The fund will maintain a Macaulay duration (the weighted average of the time to receive the cash flows from a bond) between four and seven years, allowing for dynamic management in response to changing market conditions.
“FIMLDF will be dynamically managed, allowing it to adjust its duration exposure in response to changing macro environment, and it may be an ideal investment option for investors looking to deploy money in fixed income funds as a part of their strategic investment allocation,” said Chandni Gupta, vice-president and portfolio manager, India Fixed Income, Franklin Templeton Mutual Fund.
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“We are expanding our fixed income range, having identified gaps spanning major categories in the high credit space. FIMLDF caters to investors looking for a product that can adapt to market cycles and invest in quality debt instruments,” said Avinash Satwalekar, president of Franklin Templeton–India.
Details about Franklin India Medium to Long Duration Fund:
Nature of scheme: It is an open-ended, medium to long-duration debt scheme that will invest across debt instruments like government bonds, corporate bonds and money market instruments
Investment objective: The investment objective of the scheme is to generate returns by investing in debt and money market instruments such that the Macaulay duration of the scheme portfolio is between four to seven years. However, there can be no assurance that the investment objective of the scheme would be achieved, said the company.
Benchmark: CRISIL Medium to Long Duration Debt A-III Index
The fund will reopen for continuous sale and repurchase on September 26, 2024.
Fund manager: Fund will be managed by Chandni Gupta and Anuj Tagra
Asset allocation: The scheme will allocate 0-100 per cent in debt and money market instruments, cash and cash equivalent, including government securities.
Minimum application amount: Rs 5,000 for fresh purchases, Rs 1,000 for additional purchases
Systematic Investment Plan (SIP) option available with a minimum amount of Rs 500
The amount for subscription and redemption, in excess of the minimum amount specified above, is any amount in the multiple of Re 1.
Exit load: No exit load