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Franklin Templeton MF has launched an open-ended low duration debt fund - Franklin India Low Duration Fund.
Rahul Goswami, Chief Investment Officer & Managing Director, Fixed Income and Chandni Gupta, Vice President, Portfolio Manager, India Fixed Income, Franklin Templeton will comanage the scheme.
The fund will invest in low duration government & corporate debt securities and money market instruments like certificates of deposits, commercial papers, treasury bills, PSU/PFI Bonds.
Avinash Satwalekar, President, Franklin Templeton–India, said, “Franklin India Low Duration Fund is well-suited for both individual and institutional clients seeking asset class diversification and with a potential to meet short term needs.”
Rahul Goswami said, “The fund will focus on high-quality papers of various maturities with an overall objective to maintain low Macaulay duration. The fund aims to optimize risk adjusted return while making it suitable for short and medium-term investments.”
Chandni Gupta said that the portfolio of the fund will be constructed on three key principles of lower duration, potential for high liquidity and an aim to create a high-grade credit portfolio. She said, “The fund can help asset class diversification as well as assist in building an emergency corpus. Besides, investors can also start a Systematic Withdrawal Plan (SWP) from the fund as a source of regular income”, said Gupta.
The Macaulay duration of the portfolio is between 6 months to 12 months. NIFTY Low Duration Debt Index A-I is the benchmark index for the fund and it comes with no exit load.
