Franklin Templeton (India) on Monday announced the launch of its open-ended short term debt scheme, Franklin India Short Term Fund (FISTF), an open-ended short-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years
The new fund offer for Franklin India Short Term Fund will be open for subscription from August 5 and will close on August 11. The fund will reopen for continuous sale and repurchase on August 13.
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The fund aims to invest across high-quality corporate debt securities, State Development Loans (SDLs), government securities, and money market instruments, while maintaining a portfolio Macaulay duration between 1 and 3 years.
The portfolio may predominantly comprise AAA and AA+ rated corporate bonds and sovereign securities. The fund will be managed by Rahul Goswami, Anuj Tagra and Rohan Maru. The performance will be benchmarked against NIFTY Short Duration Debt Index A-II.
“At Franklin Templeton India, we are committed to expanding our fixed income offerings to meet the evolving needs of our investors. The launch of Franklin India Short Term Fund underscores our focus on providing investors with a fixed income solution focused on high quality debt that balances income potential with prudent risk management. Backed by our experienced fixed income team and robust risk management framework, we believe Franklin India Short Term Fund is well positioned to help investors navigate evolving market conditions and achieve their short to medium term investment goals,” said Avinash Satwalekar, President, Franklin Templeton India.
The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. The exit load will be nil.
“Amid evolving macroeconomic conditions, the fixed income market continues to present selective opportunities, particularly at the shorter end of the yield curve where elevated yields, adequate liquidity, and supportive demand-supply dynamics remain favourable. Franklin India Short Term Fund is well-positioned to capitalize on these opportunities through a disciplined focus on high-quality corporate credit and active duration management,” said Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, Franklin Templeton.
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“By dynamically navigating opportunities across the short- to medium-term segment of the curve, the fund aims to generate accrual-led returns while prudently managing interest-rate and credit risks, which could help deliver better risk-adjusted outcomes across market cycles,” Goswami further said.
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