Franklin India Fixed Maturity Plans – Series 1 Plan B (1104 days) is a close-ended debt fund. The investor’s principal amount will be held at moderate risk. It is a fund that will get invested in debt or money market instrument. Investors who want to generate capital over a fixed term plan may invest in such kind of fund.
Here are a few things you should know before investing in this scheme:
New Fund Offer time period
The NFO opened on May 8, 2017, and closes on May 11, 2017. Maturity Date or the Final Redemption Date will be May 20, 2020 or immediately succeeding business day, if that day is not a business day.
The scheme will seek to generate income by investing in a portfolio of fixed income securities/ debt instruments maturing on or before the maturity of the scheme. However, there can be no assurance that the investment objective of the Scheme will be realized.
Under normal circumstances, the broad investment pattern of the respective plan’s under the scheme will be as follows:
* including Government Securities, Securitised Debt up to 50% and exposure in derivatives up to a maximum of 50%. The Scheme shall not invest in foreign securitized debt.
# Includes CDs issued by All India Financial Institutions recognized by RBI, such as NABARD,SIDBI, Exim Bank, NHB for tenors in excess of one year.
Liquidity of the Scheme
The scheme being offered through this Scheme Information Document (SID) is a close-ended debt fund. The units of the scheme will be listed on the Capital Market segment of the National Stock Exchange of India Ltd (NSE). The units of the scheme cannot be redeemed by the investors directly with the fund until the maturity/final redemption date.
Entry load, in accordance with the SEBI guidelines, will be charged by the Mutual Fund. Exit is also not applicable.
Minimum Application Charges
Subscription can be made during the NFO period for a sum of Rs 5000 and which can be increased in multiple of Re 1 thereafter.
For Plans with maturity period of 85 days up to 91 days – CRISIL Liquid Fund Index.
For Plans with maturity period of above 91 days up to 3 years – CRISIL Short Term Bond Fund Index.
For Plans with maturity period of above 3 years up to 7 years – CRISIL Composite Bond Fund Index.
For Plans with maturity period of above 7 years – I-sec Libex Index
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.