• Fund will aim for income accrual and potential capital gains by investing in a diversified mix of sovereign & high-quality corporate bonds
• Ideal for investors with a 3 Years and above investment horizon
Staff Reporter : Kolkata, 4th. September, 2024: Franklin Templeton (India) announced the launch of its open-ended medium to long duration debt fund – Franklin India Medium to Long Duration Fund (FIMLDF). The fund will look to invest in debt and money market instruments like non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills and government securities, while maintaining a duration between 4 and 7 years. FIMLDF will be managed by Chandni Gupta, VP & Portfolio Manager and Anuj Tagra, VP & Portfolio Manager, India Fixed Income, Franklin Templeton.
The New Fund Offer opens from September 3, 2024, and will close on September 17, 2024, during which units will be available at Rs. 10/- per unit.
Commenting on the fund launch and its investment strategy, Chandni Gupta, Vice President & Portfolio Manager, India Fixed Income, Franklin Templeton, said, “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.”
Anuj Tagra, Vice President & Portfolio Manager, India Fixed Income, Franklin Templeton, added, “We foresee robust domestic economic growth with a shallow rate cut cycle leading to a steeper yield curve. The fund aims to generate accrual income while opportunistically managing duration risk to deliver superior risk-adjusted returns.”
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “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. Our investment team will use top-down analysis to determine portfolio maturity and a bottom-up approach to security selection and aim to invest in a mix of government securities and corporate debt. The Indian market offers great opportunity for long-term players like Franklin Templeton, and we plan to continue bringing innovative solutions, and global best practices to our investors and partners in India.”
NFO Features
Fund Description An open-ended medium to long duration debt scheme
Type Of Scheme 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 4 to 7 years. However, there can be no assurance that the investment objective of the Scheme would be achieved.
NFO Dates September 3, 2024 to September 17, 2024
Scheme Re-opens
For continuous Sale
And Repurchase On September 26, 2024
Managed By Chandni Gupta and Anuj Tagra
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 CRISIL Medium to Long Duration Debt A-III Index
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-Latest available information)
Product Label:
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.
Type of Scheme:
An open-ended medium-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 4 years to 7 years. A fund with relatively high-interest rate risk and relatively moderate credit risk.
Potential Risk Class
Franklin India Medium to Long Duration Fund
Description of Potential Risk: Relatively High 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).
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.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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