Mumbai, November 22, 2024: Franklin Templeton (India) announced the launch of its open-ended long duration debt fund – Franklin India Long Duration Fund (FILDrF). The fund will look to 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. FILDrF will be managed by Chandni Gupta, Vice President, Portfolio Manager, and Anuj Tagra, Vice President, Portfolio Manager India Fixed Income, Franklin Templeton.
The New Fund Offer opens on November 20, 2024, and will close on December 4, 2024, during which units will be available at Rs. 10/- per unit.
Commenting on the fund’s investment strategy, Chandni Gupta, Vice President & Portfolio Manager, India Fixed Income, Franklin Templeton, said, “Franklin India Long Duration Fund will aim to 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, added, “This fund is suitable for investors with an appetite for greater interest rate risk, while seeking relatively low credit risk. It prioritizes portfolio liquidity and aims to achieve accrual income and potential capital gains to deliver superior risk-adjusted returns. 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.”
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “We continue to expand our fixed income product suite to cater to a wide range of investment outcomes for investors. This fund is our latest effort in that direction. 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.”
NFO Features
| Fund Description | Long duration fund |
| Type Of Scheme | An open ended debt scheme investing in instruments such that the Macaulay Duration of the portfolio is greater than 7 years. Relatively High interest rate risk and relatively Low credit risk |
| Investment Objective:
|
The Investment objective of the scheme is to generate returns by investing in debt and money market instruments such that the Macaulay duration of greater than 7 years. However there is no assurance that the investment objectives of the scheme would be achieved. |
| NFO Dates | November 20, 2024 to December 4, 2024 |
| Scheme Re-opens
For continuous Sale And Repurchase On |
December 4, 2024 |
| Managed By | Chandni Gupta and Anuj Tagra |
| Minimum Amount | Subscription: Fresh Purchase – Rs.5,000/-. Additional Purchase – Rs.1,000/-. Redemption: Rs.1,000/-. The amount for subscription and redemption in excess of the minimum amount specified above is any amount in multiple of Re. 1/-.
SIP: Minimum amount INR 500/- |
| Benchmark | CRISIL Long Duration Debt A-III Index |
| Exit Load | Nil |