About Franklin India Fixed Maturity Plans

Franklin Templeton Mutual Fund has launched a new fund named as Franklin India Fixed Maturity Plan – Series 6 – Plan D (1097 days). It is a close-ended debt fund scheme which invests in debt or fixed-income securities. The objective of the fund is to generate returns by investing in debt/fixed income instruments maturing on or before the maturity of the scheme.

Franklin India Fixed Maturity Plan – Series 6 – Plan D (1097 days) new issue is open for subscription from 18th July 2019 to 23rd July 2019. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit.  

NFO NameFranklin India Fixed Maturity Plan – Series 6 – Plan D (1097 days)
NFO Launch Date18th July 2019
Last Date for Application23rd July 2019
Minimum Investment AmountRs. 5,000
NatureClose-ended
Fund ManagersMr. Sachin Padwal-Desai, Mr. Umesh Sharma
RiskModerately Low
BenchmarkCRISIL Composite Bond

Invest In Franklin India Fixed Maturity Plan – Series 6 – Plan D (1094 days)

You should follow the below-mentioned steps if, you wish to invest in this NFO: 

  • Decide the amount you would want to invest in Franklin India Fixed Maturity Plan – Series 6 – Plan D (1097 days).
  • Email Groww support to support@groww.in, specifying the amount and the name of the NFO.

While investing in this NFO, as an investor you must remember that it is a close-ended mutual fund. Close-ended mutual fund means that the fund managers cannot redeem or issue any new units of the fund after the completion of its NFO period. The tenure of the scheme is 1097 days from the date of allotment of units.

Also, the minimum application amount is Rs. 5,000 and in multiples of Re. 1 thereafter. The fund targets to collect a minimum subscription of Rs. 20 crores under this scheme. This is a debt mutual fund with investments focusing on debt instruments with fixed income-generating capacity. 

Investment Objective

The scheme seeks to generate income by investing in a portfolio of fixed income securities/ debt instruments maturing on or before the maturity of the scheme.

Plans And Options Available For Franklin India Fixed Maturity Plan – Series 6 – Plan D (1094 days)

The scheme offers following plans for investment

  • Growth plan
  • Dividend plan (with payout facility)
  • Growth plan-direct
  • Dividend plan-direct (with payout facility).

Further, plan(s) with a maturity of over 365 days also offers a quarterly dividend (payout facility only) and quarterly dividend-direct (payout option only).

Franklin India Fixed Maturity Plan – Series 6 – Plan D (1094 days) opened for subscription on 18th July 2019 and will stay open till 23rd July 2019.

Investment Style And Asset Allocation

Franklin India Fixed Maturity Plan – Series 6 – Plan D (1094 days) is a close-ended debt fund which shall invest 80% – 100% of its assets in debt instruments with low to medium risk profile and up to 20% in money market instruments with a low risk profile.

Debt instruments are those which have a fixed interest rate and maturity period. Money market instruments are also a type of debt instrument with a short term maturity period like treasury bills, commercial papers, certificates of deposits, etc. Thus, by investing in the debt market there is moderately low risk and a fixed income-generating capacity. 

Fund Managers

  • Mr. Sachin Padwal-Desai is a vice president of fixed income and a fund manager at Franklin Templeton Asset Management (India) Private Limited. He joined the company in 2004.
    Mr. Padwal-Desai has over 9 years of investment and research experience in the Indian asset management and banking industry. He was previously working with ICICI Bank.
  • Mr. Umesh Sharma is a vice president of fixed income and a fund manager at Franklin Templeton Asset Management (India) Private Limited. He is with Franklin Templeton Asset Management from July 2010.
    He is a Chartered Accountant, Company Secretary, and Chartered Financial Analyst. He manages fixed income funds of the locally managed and distributed debt products.
    Before joining Franklin Templeton Asset Management, he worked as portfolio manager of fixed income at Religare Asset Management Company Private Limited.

Who should invest in Franklin India Fixed Maturity Plan – Series 6 – Plan D (1094 days)?

This close-ended debt fund scheme is suitable for investors who are seeking regular income with a low risk profile.  

Franklin Templeton Asset Management Group

Franklin Templeton’s association with India dates back to over 2 decades as an investor. As part of the group’s objective on investing in markets around the world, the office in India was set up in 1996 as Templeton Asset Management India Private Limited.

The firm primarily caters to individuals, and investment companies. It manages equity, fixed income, and balanced mutual funds for its clients. The firm invests in the public equity and fixed income markets.

It flagged off the mutual fund business with the launch of Templeton India Growth Fund in September 1996, and since then the business has grown at a steady pace.

Conclusion

Investors should know that it is a close-ended mutual fund, thus the units cannot be purchased or sold to the mutual fund in between its tenure of 1094 days. With CRISIL composite bond as its benchmark, it invests in debt and money market instruments with a motive to earn fixed income at a lower risk.

Though it invests in the debt market, which is comparative less volatile but yet market movements may have slight impacts. You should keep a check on your investment from time to time.

Moreover, it is a new fund offer and does not have a track record of returns. So, if you are not comfortable in investing in an NFO then you can always look to invest in a mutual fund with a good track record.

Happy Investing!

Disclaimer: The views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.

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