- 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.
Franklin Templeton (India)announced the launch ofits 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 securitiessuch 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 fromAugust 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 totraditional savings instruments. We firmly believe that FIUSDFcould be a valuable addition for investors looking to manage their short-termliquidity needs or emergency funds.”
Goswami added, “FIUSDF is designed keeping in mind a diversified short-duration portfolio aiming forlow-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, “FIUSDFwill be an important addition to our selectionof fixed income offerings forour 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