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Franklin Templeton Mutual Fund has launched Franklin India Long Duration Fund.
The fund will invest in government bonds, corporate bonds and money market instruments like certificates of deposits, commercial papers, treasury bills, PSU/PFI Bonds such that the Macaulay duration of the portfolio is greater than 7 years.
Chandni Gupta, Vice President, Portfolio Manager and Anuj Tagra, Vice President, Portfolio Manager India Fixed Income, Franklin Templeton will manage this scheme.
In a press release, Chandni Gupta, Vice President & Portfolio Manager, India Fixed Income, Franklin Templeton, said, “The fund will invest in a diverse portfolio of sovereign and predominantly high-grade corporate bonds, emphasizing conservative credit management. We will employ a tactical duration strategy, allowing investors to potentially benefit from falling interest rates by investing in longer-term debt securities, which may offer higher capital gains when rates decline.”
Anuj Tagra, Vice President & Portfolio Manager, India Fixed Income, Franklin Templeton, said, “This fund is suitable for investors with an appetite for greater interest rate risk, while seeking relatively low credit risk. We expect the RBI to remain cognizant of the evolving domestic and external factors and adopt a gradual approach in monetary easing to support growth without compromising on its inflation mandate.”
Avinash Satwalekar, President, Franklin Templeton–India, said, "The strategy will aim a high-quality credit, supported by robust investment and risk management processes, executed with strict discipline. It is suitable for both individual and institutional clients seeking asset class diversification and tactical duration management.”
