Franklin India Low Duration Fund is an open ended income fund which seeks to generate steady returns through investment primarily in domestic fixed income instruments and highly rated debt securities. This is a short term mutual fund investment scheme that maintains a low duration making it an ideal opportunity for investors to earn quick money. This fund is suitable for investors who are looking for higher returns as compared to liquid funds with an investment horizon ranging from three months to one year. Being a short term fund, this mutual fund investment typically has a lower risk attached to it as compared to other funds. With an average maturity period of 1.10 years, this fund is ideal for investors with short term goals such as purchasing new gadgets, saving for domestic holidays or parking of short-term funds.
Launched in July 2010, the minimum investment amount for investing in this fund scheme for a first-time investor is Rs. 10,000. If an investor opts to go down the SIP investment route, then the minimum required investment is Rs. 1,000. This fund is co-managed by seasoned managers, Santosh Kamath and Kunal Agrawal. This fund ranks amongst the top mutual funds and has been ranked number one in the ‘Credit Opportunities Funds’ category by CRISIL, for the quarter ended June 2017. As a matter of fact, it has managed to move up a rank after being ranked 2nd in the previous quarter. This strong performance has even led to it retaining its Morningstar Analyst Rating of Silver.
Aided by an extremely capable team, one of the major standouts of this fund is the presence of veteran fund manager, Santosh Kamath. Mr. Kamath who joined the fund in 2014 replaced another top manager Sachin Padwal-Desai and currently ranks among the best asset managers in the country. With over 20 years of solid experience behind him, he is the primary decision-maker who decides to make investments in sub-AAA rated bonds or any form of structured debt across the firm’s funds. He is joined by another equally able manager, Mr. Agrawal who boasts of over a decade of experience in this field. The presence of these two managers goes a long way in strengthening the fund’s credentials and future prospects.
This fund tries to portray itself as a fund which bridges the gap between a liquid fund and short term fund. The management teamlooks to invest in highly rated debt securities while aiming to diversify investments in various sectors with the intention of reducing the risk factor attached to these investments. Further, coupled with a well-defined and research-intensive approach, the asset management teamstrive to ensure the portfolio duration is short, in a bid to facilitate quick returns to its investors.
Although its returns might not generate enough excitement being a low-risk investment, the fund has managed to do reasonably well since its inception. Its returns for that matter are slightly better than market adjusted returns. Further, the team doesn’t mind implementing a contrarian approach as long as the risk/reward equation is appropriate. This approach has clearly rubbed off on the fund’s performance as the return and risk-adjusted-return parameters are quite impressive, to say the least. Owing to a research-intensive approach that prioritizes both qualitative and quantitative aspects, the team does not take downside risks lightly as well.
Individuals looking for quick returns on investments can opt for this scheme as the fund management team tend to invest in short term securities. Moreover, with a proven investment process along with a skilled and robust team, it ranks amongst the best mutual funds in India. If you’re looking forward to earn Fixed Deposit beating returns in the short term for fulfilling short-term goals, this fund is ideal for you. If you’re looking to invest in a mutual fund investment with a large number of plans, you can approach our financial advisors for tailor made investment plans.