Franklin Low Duration Fund Investment Objective
Franklin India Low Duration Fund aims to provide steady returns by investing in a mix of money market and short-term debt instruments while maintaining a low duration
|Absolute returns (%)||8.73||9.80|
Franklin India Low Duration Fund Review
As clearly outlined in the objective the fund seeks to offer steady returns by investing in debt instruments such as money market instruments and other instruments of short-term.
These types of funds are ideally used for cash management purpose. The fund has outperformed its benchmark and category consistently in different trailing time periods returning around 8.73% and 9.80% during the 1-year and the 3-year period.
The fund has instruments with an average maturity of less than a year and thus has 100% allocation to instruments with the high credit quality of A and above.
The fund invests majorly in corporate bonds which account for 81% of the total portfolio which is significantly above the category average of 39%.
Due to focus on credit quality of instruments, the fund has a very low standard deviation of 0.74% thereby making it a sound investment product for regular income.
With around 79 instruments, the fund is fairly diversified within its category and as close to a quarter held in top 10 securities, which further reduces concentration risk.
With an average credit rating of A category, the fund instruments have an average yield to maturity of 8.85% that comfortably beats any other regular traditional investment instruments such as fixed deposits or public provident funds.
Franklin India Low Duration: Fund Manager
Santosh Kamath and Kunal Agarwal jointly manage the fund since April 2014.
Mr Kamath has a Bachelor of Engineering in Electronics from REC Bhopal and a Post-Graduate Diploma in Management (PGDM) in General Management from XLRI Jamshedpur.
Prior to joining Franklin Templeton Investments, he has worked with ING Vysya AMC, Zurich Asset Management, SBI Mutual, CRISIL and Jardine Fleming Asset Management.
Mr Agrawal holds a B.Tech from IIT Delhi and a PGDM from IIM C. Prior to joining Franklin India AMC he has worked with Credits- Portfolio Management, CRISIL Ltd., IBM Ltd. & Infosys Ltd.
To see more top funds, check out Groww 30 Best Mutual Funds to Invest in 2018.
Disclaimer: the views expressed here are of the author author and do not reflect those of Groww.