Franklin Templeton (India) launched a medium-to-long-duration debt fund, Franklin India Medium to Long Duration Fund (FIMLDF), on September 3, 2024. The fund will invest in debt and money market instruments like non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills, and government securities while maintaining a duration between 4 and 7 years.

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NFO Details

The New Fund Offer (NFO) opens on September 3, 2024, and closes on September 17, 2024. During the NFO period, units will be available at Rs. 10 per unit. The minimum investment is Rs. 5,000. There is no exit load involved in the scheme.
According to the fund house, FIMLDF is suitable for investors with a three-year investment horizon or longer.

Says Chandni Gupta, vice president & portfolio manager, India Fixed Income, Franklin Templeton, said, “FIMLDF will be dynamically managed, allowing it to adjust its duration exposure in response to changing macro environment, and 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.”

Anuj Tagra, vice president & portfolio manager, India Fixed Income, Franklin Templeton, added, “We foresee robust domestic economic growth with a shallow rate cut cycle leading to a steeper yield curve. The fund aims to generate accrual income while opportunistically managing duration risk to deliver superior risk-adjusted returns.”

Avinash Satwalekar, president of Franklin Templeton–India, said the fund suits investors looking for a product that can adapt to market cycles and invest in quality debt instruments. “Our investment team will use top-down analysis to determine portfolio maturity and a bottom-up approach to security selection and aim to invest in a mix of government securities and corporate debt. The Indian market offers a great opportunity for long-term players like Franklin Templeton, and we plan to continue bringing innovative solutions and global best practices to our investors and partners in India,” Satwalekar said.