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Franklin India Ultra Short Duration Fund NFO: Review, Date & NAV

  


Franklin India Ultra Short Duration Fund: Complete Overview

“Franklin India Ultra Short Duration Fund” by Franklin Templeton Mutual Fund is an open-ended ultra-short debt Scheme that invests in debt and money market instruments for a short term with Macaulay's duration between 3 months to 6 months. The New Fund Offer (NFO) date is from August 19 to August 28, 2024, with an NFO price of Rs.5000 and in multiples of Rs.1 thereafter.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.


Franklin India Ultra Short Duration Fund NFO Details

The scheme is suitable for investors who want to achieve short-term regular income and seek to invest in debt and money market securities for a shorter duration. The scheme is a moderate-risk scheme. There is no assurance that the scheme's investment goal will be met.

The scheme will invest 0-100% of its units in money market instruments, debt securities, and cash & cash equivalents.

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Fund Overview

The Franklin India Ultra Short Duration Fund NFO minimum subscription amount is Rs.5000 and in multiples of Rs.1 thereof.

Start Date

19 August 2024

End Date

28 August 2024

Allotment Date/Subscription Date/Re-open Date

30 August, 2024.

VRO Rating

-

Expense Ratio

Nil

Exit Load

Nil

AUM 

Rs.103,943.77 crore (As of 30 Jun 2024).

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark 

Nifty Ultra Short Duration Debt Index A-I.

Min. Investment

Rs.5000 and in multiple of Rs.1.

Risk

Moderate

Short-Term Capital Gains (STCG)

As per the Tax Slab.

Long-Term Capital Gains (LTCG)

As per the Tax Slab.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme continuously, then on 30 August 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Franklin India Ultra Short Duration Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

The Objective of The Fund

The Scheme aims to invest mostly in a mix of short-term debt and money market securities to offer both high liquidity and consistent income. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Units in money market instruments, debt securities, and cash & cash equivalents

0

100

 

Peers of Franklin India Ultra Short Duration Fund

Scheme

1Y Return

AUM (Rs.)

HDFC Ultra Short-Term Fund

7.22%

15129 Cr.

ICICI Prudential Ultra Short-Term Fund

7.22%

14113 Cr.

SBI Magnum Ultra Short Duration Fund

7.23%

13220 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

  • In the event that the counterparty breaches the repurchase agreement, the scheme may be subject to counterparty risk in the case of repo lending transactions.

  • The Net Asset Value of the Scheme may be impacted by changes in interest rates, as is the case with all debt securities since the prices of securities often rise and fall in line with changes in interest rates.

  • The development of a deep secondary market for the Certificates is not guaranteed. This can make it more difficult for the investor to resell them.

  • Securities lending carries hazards, much like other forms of credit extension these risks include the possibility that the other party won't succeed.

  • The investment in the scheme could increase or decrease based on a variety of variables and pressures affecting the debt and capital markets, as well as changes in the interest rate, price, and value of the securities in which the scheme invests.

 

Past Performance of Debt Funds

Debt Funds

NAV (Rs.)

Annualised Return

Return / Risk

PGIM India Ultra Short Duration Fund - Direct Plan 

33.42

7.41%

Low to Moderate

Mirae Asset Ultra Short Duration Fund Direct Plan-Growth

1237.55

7.74%

Moderate

Nippon India Ultra Short Duration Fund Direct Plan-Growth

4153.71

7.81%

Moderate

 

Franklin India Ultra Short Duration Fund NFO-Who Can Invest?

This Fund is ideal for those who want short-term capital gain, want low risks in their Schemes, and seek to invest in debt and money market securities for a shorter duration. 

Franklin India Ultra Short Duration Fund-Growth Fund Managers:

  • Pallab Roy

  • Rahul Goswami

Conclusion

The Franklin India Ultra Short Duration Fund is appropriate for investors aiming for capital maturity in a shorter duration and those who are low-risk tolerant. Analysing the past performance track of such ultra-short fund, the return is less than 8%. Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.

 

 



Frequently Asked Questions

+

Short-term funds carry low to moderate risks and capital maturity is in a short time. If you’re looking for a quick return investment Scheme then such funds are designed to cater to the need.

 

+

It is a short duration open-ended Debt fund.

+

Ultra-short Fund duration is between 3 months to 6 months (Macaulay's duration).

+

The opening date of the Scheme is 19 August 2024.

+

NAV expands as Net Assets Value.

+

The NFO's Fund Managers are Pallab Roy and Rahul Goswami.



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