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Franklin India Low Duration Fund (Number of Segregated Portfolios 2)##

'Hi, I came across this interesting fund from Franklin Templeton. Check it out!'
Annualised Returns As of 31/08/2020
7.85%
Minimum Investment/Multiples for Fresh Purchase (INR)

10000/1 (G); 25000/1 (Monthly & Quartertly Div. Plan)

Additional Investment/Multiples thereof (INR)

1000/1 (G); 5000/1 (Monthly & Quartertly Div. Pla

Over 50,000 Unique Investors (As of 30/06/2020)
Why should you invest in Franklin India Low Duration Fund (Number of Segregated Portfolios 2)?
  • This fund focuses on the lower end of the yield curve
  • The fund primarily invests in corporate bonds and other fixed income instruments.
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 @ 7.5%^ 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.

^ In accordance with the Central Board of Direct Taxes press release dated May 13, 2020, the mutual fund shall deduct TDS at the rate of 7.50% for resident investor w.e.f. May 14, 2020 till March 31, 2021 (earlier 10% from April 1, 2020 to May 13, 2020).

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

The recommended investment horizon is “3 months or more”

Alternative To

  • Short Term Savings Instruments

Suitable For

  • Regular Income

  • Parking of short term funds

Fund Video

Fund Information

  • Inception 07/02/2000
  • Entry Load Nil
  • Exit Load In respect of each purchase of units - 0.50% if the units are redeemed/switched-out within 3 months of allotment
  • NAV in INR as on 29/09/2020
  • Growth 21.6908
  • Monthly Dividend 10.0016
  • Quarterly Dividend 9.8230
  • Direct-Growth 22.2412
  • Direct-Monthly Dividend 10.3365
  • Direct-Quarterly Dividend 10.1576
  • Additional Fund Information as on 31/08/2020
  • Fund Size in INR (CR) 2442.43
  • Weighted Average Maturity 1.35 Years
  • Modified Duration [3] 0.86 Years
  • Yield to Maturity [2] 11.45%
  • Expense Ratio (Direct) [#] 1.09
  • Benchmark(s) NIFTY Low Duration Debt IndexINST2::Crisil 1 Year T-Bill Index
  • Fund Manager Santosh Kamath & Kunal Agrawal
Product Label

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

  • Regular income for short term
  • A fund that focuses on low duration securities
Moderate

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

Update on ADA Group exposures collateralised by equity

 

## 1. Franklin India Low Duration Fund- Segregated Portfolio 1- 8.25% Vodafone Idea Ltd-10JUL20. 2. Franklin India Low Duration Fund- Segregated Portfolio 2- 10.90% Vodafone Idea Ltd 02Sep2023 (P/C 03Sep2021)

Post the creation of the segregated portfolio (8.25% Vodafone Idea Ltd 10JUL20) on January 24, 2020, the annual coupon due and the full principal due along with the interest was received by the segregated portfolio on June 12, 2020 and July 10, 2020 respectively. With these receipts, the segregated portfolio completed full recovery on July 10, 2020.

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.

** 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.