Franklin Templeton Mutual Fund launches Franklin India Medium to Long Duration Fund

Templeton Asset Management India Pvt. Ltd. was the name under which Franklin Templeton Investments first conducted business in India back in 1996. The organization is in charge of $724.1 billion in assets globally. Franklin Templeton Mutual Fund is a trust that is registered with SEBI.

NFO Update from Franklin Templeton Mutual Fund:

The most recent open-ended medium-to-long-duration debt fund from Franklin Templeton (India) Mutual Fund has been launched. This fund, known as the Franklin India Medium to Long Duration Fund (FIMLDF), seeks to produce accrual income as well as possible capital gains. The fund will invest in a diversified portfolio of sovereign and premium corporate bonds.

The plan will focus on debt and money market instruments with maturities of four to seven years, such as government securities, bonds, certificates of deposit, non-convertible debentures, commercial papers, and Treasury bills, according to the fund house. The fund will be dynamically managed to adjust its duration exposure in response to changes in the macroeconomic environment. Vice president and portfolio manager for India Fixed Income Anuj Tagra and vice president and portfolio manager for Franklin Templeton Chandni Gupta are in charge of it.

Complete details about the New Fund Offer (NFO):

NFO units are available for purchase at Rs. 10 per unit, and it is open from September 3 to September 17, 2024. On September 26, 2024, the scheme will reopen for continuous sales and purchases. It is measured against the CRISIL Medium to Long Duration Debt A-III Index.

A minimum subscription amount of Rs. 5,000 is required for new purchases into the fund, and Rs. 1,000 is required for additional investments. A Rs. 500 Systematic Investment Plan (SIP) option is also available.

Statement from Vice President and President of Franklin Templeton:

“FIMLDF will be dynamically managed, allowing it to adjust its duration exposure in response to changing macroenvironments,” stated Chandni Gupta, vice president and portfolio manager of Franklin Templeton’s India fixed income. “It may be an ideal investment option for investors looking to deploy money in fixed-income funds as a part of their strategic investment allocation.”

According to Anuj Tagra, Vice President & Portfolio Manager, Franklin Templeton, “We anticipate strong domestic economic growth and a shallow rate cut cycle that will result in a steeper yield curve.” The fund seeks to produce superior risk-adjusted returns by opportunistically managing duration risk and generating accrual income.”

Franklin Templeton-India President Avinash Satwalekar said at the fund’s launch: “We are expanding our fixed income range because we have identified gaps across key categories in the high credit space. FIMLDF caters to investors looking for a product that can be adjusted to market cycles and invest in high-quality debt instruments. Our investment team intends to invest in a combination of corporate debt and government securities and will choose securities utilizing a bottom-up approach and top-down analysis to determine portfolio maturity. Long-term investors and partners like Franklin Templeton have a lot of potential in the Indian market, and we intend to keep introducing them to cutting-edge solutions and international best practices.” 

Conclusion: The NFO is planning to invest for a minimum of 4 to 7 years in NCDs, bonds, certificates of deposits, commercial papers, Treasury bills, and government securities, which offer great returns for investors.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.