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Franklin India Banking & PSU Debt Fund

'Hi, I came across this interesting fund from Franklin Templeton. Check it out!'
Annualised Returns As of 31/01/2020
Minimum Investment/Multiples for Fresh Purchase (INR)


Additional Investment/Multiples thereof (INR)


Over 1,500 Unique Investors (As of 31/12/2019)
Why should you invest in Franklin India Banking & PSU Debt Fund?
  • The fund primarily invests in debt securities issued by Banks and PSUs/PFIs and in Municipal Bonds
  • It aims to minimize interest rate volatility in the portfolio and generate optimum return by keeping credit risk low and investing primarily in high quality debt instruments.
  • The fund may also seek marginal exposure in Government Securities and State Development Loans in order to maintain an optimum balance of yield, stability and liquidity.
What are the “Tax Benefits” of investing in this fund?
  • Long term capital gains (LTCG) tax @20% (plus surcharge, if applicable and cess) with indexation if units held for more than 36 months
  • Short term capital gains (STCG) tax at the income tax slab rate if units are held for less than 36 months
  • Investor does not pay any tax on dividends but a Dividend Distribution Tax (DDT) is deducted at source @29.12% ( 25% + 12% surcharge + 4% Health & education cess) for Individuals and @ 34.944% ( 30% + 12% surcharge + 4% Health & education cess) for any other person.^^
  • In case of an investor being NRI, LTCG tax are chargeable @ 10% (plus surcharge, if applicable and cess) without indexation relating to units redeemed from unlisted schemes.

^^ The DDT is to be paid by the mutual fund after grossing-up income distributed to the investor.

What is the “Ideal Investment Horizon” while investing in this fund?

The recommended investment horizon is “1 year or more”

Alternative To
  • Medium Term Savings Instruments

Suitable For
  • Regular Income

  • Reasonable Capital appreciation

Fund Video

Franklin India Banking & PSU Debt Fund is a fixed income fund that invests in debt securities issued by Banks and Municipal Bonds. It is ideal for those seeking low risk and get higher returns. You can consider investing in this fund if you have an investment horizon of 1 year or more. To know more about Franklin India Banking & PSU Debt Fund, watch the video below.

Fund Information

  • Inception 25/04/2014
  • Entry Load Nil
  • Exit Load Nil (w.e.f. April 25, 2016)
  • NAV in INR as on 18/02/2020
  • Growth 16.3940
  • Dividend 10.9075
  • Direct-Growth 16.8242
  • Direct-Dividend 11.2494
  • Additional Fund Information as on 31/01/2020
  • Fund Size in INR (CR) 1056.82
  • Weighted Average Maturity 3.83 Years
  • Modified Duration [3] 3.03 Years
  • Yield to Maturity [2] 7.20%
  • Expense Ratio [#] 0.51
  • Expense Ratio (Direct) [#] 0.23
  • Benchmark(s) Crisil 10 Year Gilt Index
    NIFTY Banking & PSU Debt Index
  • Fund Manager Umesh Sharma, Sachin Shankar Padwal Desai & Pyari Menon
Product Label
This product is suitable for Investors who are seeking*:
  • Regular Income for medium term
  • An income fund that invests predominantly in debt and money market instruments issued by Banks,
    PSUs, PFIs and Municipal Bonds.

*Investors should consult their financial distributors if in doubt about whether the product is suitable for them.

All investments in debt funds are subject to various types of risks including credit risk, interest rate risk, liquidity risk etc. Some fixed income schemes may have a higher concentration to securities rated below AA and therefore may be exposed to relatively higher risk of downgrade or default and the associated volatility in prices which could impact NAV of the scheme. Credit rating issued by SEBI registered entities is an opinion of the rating agency and should not be considered as an assurance of repayment by issuer. There is no assurance or guarantee of principal or returns in any of the mutual fund scheme.

[#] The rates specified are the actual expenses charged as at the end of the month. The above ratio includes the GST on Investment management fees. The above expense also includes proportionate charge in respect sales of beyond T-30 cities subject to maximum of 30 bps on daily net assets wherever applicable.

[2] Pre fund expenses.

[3] Modified duration of floating rate securities is calculated based on the next reset date.