NFO Alert: Franklin India Mutual Fund Launches Low Duration Fund

Franklin Templeton Mutual Fund is introducing the Franklin India Low Duration Fund, an open-ended low-duration debt scheme. The New Fund Offer (NFO) will be open from February 25, 2025, to March 5, 2025. The scheme will reopen for continuous purchases and redemptions on March 7, 2025.

Plans, Options & Other Details

• Plans: Regular and Direct
• Options: Growth and Income Distribution cum Capital Withdrawal (IDCW)
• Minimum Investment: ₹5,000 during NFO, ₹1,000 for additional purchases
• Exit Load: Nil
• Lock-in Period: NA
• Riskometer: Moderate
• Benchmark: NIFTY Low Duration Debt Index A-I

Annual recurring expenses, including fund management and operational costs, may go up to 2% of daily net assets as per SEBI guidelines.

Investment Objective & Strategy

The scheme aims to generate income through investments in debt and money market instruments, maintaining a Macaulay duration between 6 to 12 months. This means the portfolio will consist of short-term debt instruments to manage risk and liquidity. There is no guarantee of returns.

Where Will the Fund Invest?

• Debt securities & money market instruments: 0% – 100%
• Securitized debt: Up to 50%
• Repo in corporate debt securities: Up to 10%
• No investment in: Equity, REITs, InvITs, foreign securities, or credit default swaps

The fund’s performance will be measured against the NIFTY Low Duration Debt Index A-I. Since this is a new scheme, past performance data is not available.

Risk Classification

The scheme falls under Potential Risk Class B-III, indicating relatively high interest rate risk and moderate credit risk. Investors should assess their risk tolerance before investing.

Final Notes

Investors should read the scheme document carefully before making any investment decisions.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.