The new fund offer or NFO of the scheme will open for subscription on August 19 and close on August 28 during which units will be available at Rs 10 per unit. The scheme will again open for continuous sale and repurchase on August 30.
The fund will invest in debt and money market instruments such as non-convertible debentures, bonds, certificates of deposit, commercial paper, Treasury bills and government securities, such that the Macaulay duration of the portfolio is between 3 and 6 months.
The plan will be managed by Rahul Goswami and Pallab Roy. The scheme will be benchmarked against the Nifty Ultra Short Duration Debt Index AI. The exit load will be zero.
The minimum application amount for a new purchase will be Rs 5000. For additional purchase, the minimum application amount will be Rs 1000. For redemption, the minimum application amount will be Rs 1000. The subscription and redemption amount in excess of the minimum amount specified above is any amount which is a multiple of Rs 1. For SIP, the minimum amount is Rs 500.
“Fixed income should be a core part of any investor’s portfolio. Historically, in India, investors have turned to banking products for these needs. However, debt funds aim to offer comparable returns to traditional savings instruments. We strongly believe that FIUSDF could be a valuable addition for investors looking to manage their short-term liquidity needs or emergency funds,” said Rahul Goswami, Chief Investment Officer and Managing Director, India Fixed Income, Franklin Templeton. Goswami added, “FIUSDF is designed keeping in mind a diversified short duration portfolio targeting low interest rate risk and low to moderate credit risk. Furthermore, in the current macroeconomic scenario and the expectation of the yield curve steepening due to a high liquidity environment, the fund aims to be well positioned to provide a mix of income and capital growth for conservative fixed income investors.” “FIUSDF will be an important addition to our selection of fixed income offerings for our investors.” The fund aims to offer returns in line 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 all market cycles,” he said. Avinash SatwalekarPresident, Franklin Templeton–India.
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