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Our Bureau

Mumbai , April 11

FRANKLIN Templeton Investments (India) is launching a new fund, the Franklin Templeton Fixed Tenure Fund - Series 1 60 Month Plan. It is a close-ended income fund that seeks to provide investors steady returns, according to a press release from the fund house.

The public offer at Rs 10 will be from April 11-29.

"We believe that the 60 Month Plan is an unique product that blends stability of fixed income instruments with the potential of equities. Over the past few years, on the back of falling interest rates investors have seen their returns from traditional savings products trend lower.

"And the recent volatility in the debt markets has resulted in very few choices for investors with a long-term horizon, who are looking for competitive returns that will help them cope with the rising inflation.

"The 60 Month Plan with its predominantly conservative debt portfolio with a slice of equity helps investors in achieving steady returns and also take advantage of the growth potential of equities through a single investment, " Mr Ravi Mehrotra, President-India, was quoted in the release.

In addition to the potential for capital appreciation, investors in these funds can also avail themselves of tax benefits through indexation.

Moreover, they have the liquidity option on a half-yearly basis subject to applicable exit loads, which is not available in traditional savings avenues of similar investment horizon, the release said.

The scheme would invest at least 70 per cent in debt instruments that are maturing in line with the duration of the plan.

This would help in reducing interest rate risk. The remainder would be invested in equities.

"Given the strong fundamentals on the economic and corporate fronts, this marginal exposure to equities should help the portfolio in achieving higher risk-adjusted returns over the tenure of the plan," Mr Sukumar Rajah, CIO - Equity and Sameer Kulkarni, Head - Fixed Income, were quoted in the release.

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