NFO Alert: Franklin Templeton Mutual Fund launches long-duration fund

Franklin Templeton Mutual Fund has launched an NFO of Franklin India Long Duration Fund, an open-ended debt scheme that invests in instruments such that the Macaulay Duration of the portfolio is greater than seven years.

The New Fund Offer (NFO) for the scheme is open for subscription and will close on December 4.

The investment objective of the scheme is to generate returns by investing in debt and money market instruments, ensuring the Macaulay duration of the portfolio exceeds seven years.


To achieve this objective, the scheme aims for long-term capital appreciation with income by investing in debt and money market instruments, while maintaining a portfolio with a Macaulay duration greater than seven years. The portfolio will be actively managed to generate income, focusing on an optimal balance between yield, safety, and liquidity.

The scheme will offer both regular and direct plans, with growth and IDCW (Income Distribution cum Capital Withdrawal) options, and will be benchmarked against the CRISIL Long Duration Debt A-III Index. Chandni Gupta and Anuj Tagra will manage the scheme.

The minimum application amount during the NFO is Rs 5,000, and in multiples of Re 1 thereafter. The minimum additional purchase amount is Rs 1,000, with subsequent investments in multiples of Re 1.

The scheme will allocate 0-100% in debt securities, money market instruments, cash, and cash equivalents.

The exit load is nil. The maximum Total Expense Ratio (TER) permissible under Regulation 52(6)(c) is not exceeding 2.00% of the daily net assets.

The scheme is suitable for investors seeking income generation and capital appreciation over the long term. It is designed for those who wish to invest predominantly in debt and money market instruments with a portfolio Macaulay duration of more than seven years.

According to the scheme's riskometer, the principal invested will be at “moderate” risk.