The new fund offer or NFO will open for subscription on September 3 and close on September 17. The scheme will reopen for continuous sale and repurchase on September 26.
The scheme will be benchmarked against the CRISIL Medium to Long Duration Debt Index A-III and will be managed by Chandni Gupta and Anuj Tagra.
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The plan will allocate between 0% and 100% in debt and money market instruments, cash and cash equivalents, including government securities.
The minimum investment amount for fresh purchase is Rs 5,000. For SIP, the minimum investment amount is Rs 500. For further purchase, it is Rs 1,000 and for redemption, it is Rs 1,000. The amount for subscription and redemption, in excess of the minimum amount specified above, is any amount in the multiple of Rs 1. The fund will seek to invest in debt and money market instruments such as non-convertible debentures, bonds, certificates of deposit, commercial papers, treasury bills and government securities, while maintaining a duration between 4-7 years. “FIMLDF will be dynamically managed, allowing it to adjust its duration exposure in response to the changing macro environment, and can be an ideal investment option for investors looking to invest money in fixed income funds as part of their strategic investment allocation,” said Chandni Gupta, Vice President and Portfolio Manager, India Fixed Income, Franklin Templeton Mutual Fund.
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“We expect strong domestic economic growth with a shallow rate-cutting cycle leading to a steeper yield curve. The fund aims to generate accrued income while opportunistically managing duration risk to deliver superior risk-adjusted returns,” said Anuj Tagra, Vice President and Portfolio Manager, India Fixed Income, Franklin Templeton Mutual Fund.
The scheme is suitable for investors seeking income generation/capital appreciation over the medium to long term and wish to invest predominantly in debt and money market instruments with a Macaulay portfolio duration of between 4 and 7 years.
“We are expanding our fixed income portfolio, having identified gaps spanning major categories in the high credit space. FIMLDF caters to investors looking for a product that can adapt to market cycles and invest in quality debt instruments. Our investment team will use a top-down analysis to determine portfolio maturity and a bottom-up approach to security selection and will aim to invest in a mix of government securities and corporate debt. The Indian market offers tremendous opportunities for long-term players like Franklin Templeton, and we plan to continue delivering innovative solutions and global best practices to our investors and partners in India,” said Avinash Satwalekar, President, Franklin Templeton–India.
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