Franklin Templeton (India) will launch an open-ended debt scheme investing in overnight securities - Franklin India Overnight Fund (FIONF). The fund intends to provide reasonable income along with high liquidity by investing in overnight securities having maturity of 1 business day.
Overnight funds are ideal for investors looking to generate returns along with safety, higher liquidity, lower default risk and interest rate risk for their short-term savings. The fund can earn returns even for a day or the weekend and has no lock-in period and exit load.
In a press release, Sanjay Sapre, President, Franklin Templeton - India said, “Apart from catering to long term investment horizons, mutual funds are also an important investment vehicle for investors looking to park spare funds overnight. While managing their daily operational needs, these investors typically seek investments that can meet their short-term liquidity horizons as well as carry low interest rate risk and minimal default risk.”
Pallab Roy and Umesh Sharma will co manage the scheme.
