Deliver optimum returns with low credit risk: Franklin India Banking & PSU Debt Fund Celebrates 11th Anniversary

Investment Guru Thursday, May 29, 2025 0

Deliver optimum returns with low credit risk: Franklin India Banking & PSU Debt Fund Celebrates 11th Anniversary

Franklin Templeton Mutual Fund is marking the 11th anniversary of the Franklin India Banking & PSU Debt Fund, with a significant dual milestone with the scheme crossing ₹500 crore in Assets Under Management (AUM).

Launched in 2014, the fund invests a minimum of 80% of its portfolio in high-quality debt instruments issued by banks, public sector undertakings (PSUs), and municipal bodies, aiming to deliver optimum returns with low credit risk. The fund is structured to minimize interest rate volatility while maintaining portfolio quality.

Over the past 1-year and 3-year periods, the scheme has outperformed its benchmark, reflecting robust and consistent performance. A ₹10,000 investment at inception would have grown to ₹21,942 today, while a ₹10,000 monthly SIP since inception would now be worth ₹19.58 lakh—testament to the fund’s steady compounding over time.

The scheme jointly managed by Chandni Gupta and Anuj Tagra is suitable for retail investors who are looking for stability by minimising interest rate volatility & lowering credit risk on their fixed income investments while generating a good risk adjusted return.

As of April 30, 2025, the fund had 57.16% of its portfolio in PSU debt instruments and 16.20% in government securities (gilts). The fund is suitable for investors looking at an investment horizon of a year or more.

The Franklin India Banking & PSU Debt Fund continues to be a preferred option for investors seeking stable returns with limited credit risk in a dynamic interest rate environment.

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