Franklin Templeton launches fixed tenure fund (series XVII)

Franklin Templeton Investments (India), is launching a new closed end income fund - Franklin Templeton Fixed Tenure Fund - Series XVII( 3 Years Plan). The new fund offer opens on October 13, 2012 and closes on October 27, 2012.

The Structure

The fund will invest atleast 80% in debt instruments that will mature in line with the duration of the fund, with the balance 20% of the corpus to be invested in equities. As per the fund manager, this marginal exposure to equity will help investors in achieving superior risk adjusted returns over the tenure of the fund. The minimum investment amount is Rs 10,000. Units will be available at Rs 10, and there is no entry load during the NFO. After the NFO, the Units of the Scheme will be listed on the NSE, where investors can buy or sell units at market prices.

Why invest?

Through this fund, you can preserve your capital, and gain a marginal exposure to equities. This will give you higher risk adjusted returns.

Why not invest

Since the fund is close ended, liquidity is low. In case you wish to sell units in an emergency, you may have to do so at a discount to the NAV.