Franklin Templeton Mutual Fund launches ultra short duration fund
Franklin Templeton Mutual Fund announced the launch of Franklin India Ultra Short Duration Fund, an open ended ultra-short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between three months and six months with a fund with relatively low interest rate risk and moderate credit risk.
The new fund offer or NFO of the scheme will open for subscription on August 19 and will close on August 28 during which units will be available at Rs 10 per unit. The scheme will reopen for continuous sale and repurchase on August 30.
The fund shall invest in debt and money market instruments like non-convertible debentures, bonds, certificates of deposits, commercial papers, treasury bills and government securities such that the Macaulay duration of the portfolio is between 3 months and 6 months.
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The scheme will be managed by Rahul Goswami and Pallab Roy. The scheme will be benchmarked against Nifty Ultra Short Duration Debt Index A-I. The exit load will be nil.
The minimum application amount for fresh purchase will be Rs 5,000. For additional purchase, the minimum application amount will be Rs 1,000. For redemption, the minimum application amount will be 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. For SIP, the minimum amount is Rs 500.
“Fixed income should form a critical part of any
