⦁ Fund aims to offer the benefits of lower volatility, reduced interest rate risk, and moderate credit risk, making it a good choice for short-term savings.
⦁ Ideal for investors with a 1-6 month investment horizon.
Kolkata : Franklin Templeton (India) announced the launch of its open ended ultra-short term debt fund – Franklin India Ultra Short Duration Fund (FIUSDF). The fund shall invest in debt and money market instruments like non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills and government securities such that the Macaulay duration of the portfolio is between 3 months and 6 months. FIUSDF will be managed by Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income and Pallab Roy, Portfolio Manager, India Fixed Income.
The New Fund Offer opens from August 19, 2024, and will close on August 28, 2024, during which units will be available at Rs. 10/- per unit.
Commenting on the fund launch and its investment strategy, Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, Franklin Templeton, said, “Fixed income should form a critical part of any investor’s portfolio. Historically in India, investors have resorted to banking products for these needs. However, debt funds aim to offer comparable returns to traditional savings instruments. We firmly believe that FIUSDF could be a valuable addition for investors looking to manage their short-term liquidity needs or emergency funds.”
Goswami added, “FIUSDF is designed keeping in mind a diversified short-duration portfolio aiming for low-interest rate risk and low to moderate credit risk. Further, in the current macro-economic scenario, and the expectation of the yield curve steepening on the back of high liquidity environment, the fund aims to be well-positioned to deliver a combination of income and capital growth for conservative fixed income investors.”
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “FIUSDF will be an important addition to our selection of fixed income offerings for our investors. The fund aims to offer returns commensurate with moderate credit risk for both institutional and individual investors. This latest addition leverages the extensive knowledge and experience our fixed income team has, in managing funds across market cycles.”
NFO Features
Fund Description Ultra Short Duration Fund
Type Of Scheme An open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 months and 6 months. A fund with relatively low interest rate risk and moderate credit risk.
NFO Dates August 19, 2024 to August 28, 2024
Scheme Re-opens
For continuous Sale
And Repurchase On August 30, 2024
Managed By Rahul Goswami and Pallab Roy
Minimum Amount Subscription: Fresh Purchase – Rs.5,000/-. Additional Purchase – Rs.1,000/-. Redemption: Rs.1,000/-. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-.
SIP: Minimum amount INR 500/-
Benchmark Nifty Ultra Short Duration Debt Index A-I
Exit Load Nil
For further details refer Scheme Information Document available on www.franklintempletonindia.com.
About Franklin Templeton
Franklin Templeton (India) is one of the largest foreign fund houses** in the country. It manages mutual funds schemes catering to varied investor requirements and offering different investment styles to choose from. It has offices in 39 cities and Collection Centers in over 100 locations across the country.
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.66 trillion in assets under management as of July 31, 2024. For more information, please visit www.franklintempletonindia.com.
** Source: AMFI Website (based on AAUM as on July 31, 2024)
Potential Risk Class
Franklin India Ultra Short Duration Fund
Description of Potential Risk: Relatively Low interest rate risk and Moderate credit risk
Potential Risk Matrix contains Maximum Interest rate risk (calculated using Macaulay Duration of the scheme) and Maximum Credit Risk (calculated using the Credit Risk Value).
Please note that this document does not constitute an offer to sell or a solicitation of an offer to buy the units of the fund described herein. This is meant for discussion purposes only and not for further circulation. The fund details above are being furnished to you on a confidential basis. The fund may / may not be launched in its current form and the fund details above are subject to change at the time of actual launch of the scheme.
Product Label:
This Fund is suitable for investors who are seeking*: Scheme Riskometer
⦁ Short term regular income
⦁ Investment in debt & money market securities
- Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Please refer to our website (https://www.franklintempletonindia.com/downloadsServlet/pdf/product-labels-jg9o5k7l) or latest Risk-o-meters of scheme and primary benchmark (Tier I) calculated in accordance with Para 5.16 and 17.4 of SEBI Master Circular on Mutual Funds dated June 27, 2024.
Disclaimer: The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. Readers shall be fully responsible for any decision taken on the basis of this document. The instruments and securities mentioned above is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party. The instruments and securities may or may not be part of our Portfolio or schemes at the time of investing. Past performance may or may not be sustained in future. For detailed asset allocation please refer the scheme information document of the scheme.
*The portfolio manager aims to run a comparatively better credit quality portfolio. The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. Readers shall be fully responsible for any decision taken based on this document. The instruments and securities may or may not be part of our portfolio or schemes at the time of investing. Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Please note that this document does not constitute an offer to sell or a solicitation of an offer to buy the units of the fund described herein. This is meant for discussion purposes only and not for further circulation. The fund details above are being furnished to you on a confidential basis. The fund may / may not be launched in its current form and the fund details above are subject to change at the time of actual launch of the scheme.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
