Launched in 1997, the scheme is among the longest-running fixed income funds in India’s private sector mutual fund industry. According to the fund house, it has delivered a compounded annualised return (CAGR) of 8.56% since inception, by investing primarily in high-quality corporate bonds.
The scheme is managed by Rahul Goswami, Anuj Tagra and Chandni Gupta, and follows a conservative approach with a portfolio spread of 52% in corporate bonds, 32% in public sector bonds, and 8% in government securities. The Macaulay duration of 2.6 years reflects its short-to-medium-term orientation, which the fund managers said helps manage interest rate risk.
Commenting on the milestone, Rahul Goswami, CIO – Fixed Income, Franklin Templeton Asset Management (India), said the scheme reflects the fund house’s philosophy of “disciplined, risk-aware fixed income management.”
The fund house noted that more than four-fifths of the portfolio is invested in AAA-rated and high-quality instruments, aiming to balance safety with returns. “These high-rated bonds not only carry minimal risk of default but are also the most traded and liquid,” said Anuj Tagra, Vice President – Portfolio Manager, Fixed Income.
The managers added that India’s improving demand environment and rising capacity utilisation may lead to increased private capital expenditure, potentially resulting in greater issuance of corporate bonds. Against this backdrop, the fund continues to maintain a high allocation to short- and medium-term maturities, while selectively exploring opportunities at the longer end of the yield curve where spreads have widened.
The scheme allows investment through SIPs starting at ₹500, making it accessible to both retail and institutional investors seeking income generation with relatively lower risk.
Franklin Templeton is among the largest foreign fund houses in India, managing multiple schemes across asset classes.
ALSO READ | Baroda BNP Paribas Aggressive Hybrid Fund has given nearly 3 times returns on lump sum in 8 years
