- Fund aims to offer the benefits of lower volatility, reduced interest rate risk, and moderate credit risk, making it a good choice for short-term savings.
- Ideal for investors with a 1-6 month investment
Franklin Templeton (India) announced the launch of its open ended ultra-short term debt fund – Franklin India Ultra Short Duration Fund (FIUSDF).
The fund shall invest in debt and money market instruments like non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills and government securities such that the Macaulay duration of the portfolio is between 3 months and 6 months.
FIUSDF will be managed by Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income and Pallab Roy, Portfolio Manager, India Fixed Income.
The New Fund Offer opens from August 19, 2024, and will close on August 28, 2024, during which units will be available at Rs. 10/- per unit.
Commenting on the fund launch and its investment strategy, Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, Franklin Templeton, said, “Fixed income should form a critical part of any investor’s portfolio. Historically in India, investors have resorted to banking products for these needs.
However, debt funds aim to offer comparable returns to traditional savings instruments. We firmly believe that FIUSDF could be a valuable addition for investors looking to manage their short-term liquidity needs or emergency funds.”
Goswami added, “FIUSDF is designed keeping in mind a diversified short-duration portfolio aiming for low-interest rate risk and low to moderate credit risk.
Further, in the current macro-economic scenario, and the expectation of the yield curve steepening on the back of high liquidity environment, the fund aims to be well-positioned to deliver a combination of income and capital growth for conservative fixed income investors.”
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “FIUSDF will be an important addition to our selection of fixed income offerings for our investors.
The fund aims to offer returns commensurate with moderate credit risk for both institutional and individual investors. This latest addition leverages the extensive knowledge and experience our fixed income team has, in managing funds across market cycles.”
