Why should you invest in Franklin India Corporate Debt Fund (erstwhile Franklin India Income Builder Account)?
- The fund predominantly invests in AA+ and above rated corporate bonds with a moderate duration.
- The fund aims to provide investors regular income and capital appreciation.
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
- Dividends shall be taxable in the hands of investors and the mutual fund will deduct TDS @10% for resident investors and @20% (plus applicable surcharge and cess) for non-resident investors before payouts/re-investment. However, investors can claim tax-credit of TDS deducted at the time of filing their annual return.
- 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.
What is the “Ideal Investment Horizon” while investing in this fund?
The recommended investment horizon is “1 year or more”
Alternative To
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Short Term Savings Instruments
Suitable For
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Regular Income
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Reasonable Capital appreciation
Fund Video
Franklin India Corporate Debt Fund, earlier known as Franklin India Income Builder Fund is a corporate bond fund that focuses on income generation along with some capital gains. Corporate debt funds are an ideal for those seeking lower rates of risk. You can consider investing in this fund if you have an investment horizon of 1 year or more. To know more about Franklin India Corporate Debt Fund, watch the below video.
Fund Information
- Inception 23/06/1997
- Entry Load Nil
- Exit Load Nil
- NAV in INR as on 09/04/2020
- Direct-Growth 74.6097
- Direct-Annual Dividend 18.3709
- Direct-Half Yearly Dividend 14.9711
- Direct-Monthly Dividend 17.0250
- Direct-Quarterly Dividend 14.1734
- Plan A-Growth 70.9007
- Plan A-Annual Dividend 17.0469
- Plan A-Half Yearly Dividend 13.6520
- Plan A-Monthly Dividend 15.8678
- Plan A-Quarterly Dividend 13.1743
- Additional Fund Information as on 31/03/2020
- Fund Size in INR (CR) 1466.06
- Weighted Average Maturity 3.36 Years
- Modified Duration [3] 2.64 Years
- Yield to Maturity [2] 7.89%
- Expense Ratio [#] 0.92
- Expense Ratio (Direct) [#] 0.32
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Benchmark(s)
Crisil 10 Year Gilt Index
NIFTY Corporate Bond Index - Fund Manager Santosh Kamath
Product Label
This product is suitable for Investors who are seeking*:
- Medium term capital appreciation with current income
- A bond fund – focuses on AA+ and above rated Corporate/PSU Bonds.
*Investors should consult their financial distributors if in doubt about whether the product is suitable for them.
** The information given here is neither a complete disclosure of every material fact of Income-tax Act 1961 nor does it constitute tax or legal advice. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.
## Effective June 4, 2018.
[#] 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.
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.