Franklin Templeton Mutual Fund Debt
Best Mutual Funds 2024
Returns
Sort by
Need Loan Assistance?
Connect with Loan Advisor Now!
Top 10 Amc
Best Debt Mutual Funds
- SBI Magnum Gilt Fund - Growth - Direct Plan
- Axis Credit Risk Fund - Growth - Direct Plan
- HDFC Credit Risk Debt Fund - IDCW - Direct Plan
- Nippon India Income Fund - Bonus - Direct Plan
- UTI Short Duration Fund - Annual IDCW - Direct Plan
- ICICI Prudential Credit Risk Fund - Growth - Direct Plan
- Tata Gilt Securities Fund - IDCW - Direct Plan
- Canara Robeco Gilt Fund - Growth - Direct Plan
- DSP Credit Risk Fund - Growth - Direct Plan
- Mirae Asset Dynamic Bond Fund - Growth - Direct Plan
- Sundaram Ultra Short Duration Fund - Weekly IDCW
- L&T Ultra Short Term Fund - Bonus - Direct Plan
- Motilal Oswal Ultra Short Term Fund - Quarterly IDCW - Direct Plan
Franklin Templeton Mutual Fund Debt Investment Objective
Franklin Templeton debt mutual fund strives to give investors steady income and capital safety during the short to medium term. These funds make investments in securities that produce fixed income, such as treasury bills, government securities, and other money market instruments. The fund manager will choose the debt securities based on the fund’s investment objective and underlying ratings. Over the specified investment horizon, a debt fund investor would receive returns in the form of interest income and a gradual rise in the fund value.
Risks Involved in Franklin Templeton Debt Mutual Fund
Franklin Templeton debt mutual fund risk is minimal to moderately high. The value of the fund may fluctuate depending on the cost of the underlying debt security. Interest rates, governmental initiatives, tax regulations, and other economic changes may impact the cost of debt securities. The duration of the portfolio and the typical maturity have an impact on risk as well. Investors must be aware of their personal risk tolerance when investing in Franklin Templeton debt mutual fund.
Return Potential of Franklin Templeton Debt Mutual Fund
Return is a byproduct of the investor’s assumed risk. Franklin Templeton debt mutual fund returns are higher than those from traditional fixed-income investments. For five years, these funds have historically been known to produce average returns of about 7%–10%. The tenure of the mutual funds and credit ratings both affect the level of returns. It must be noted that the returns are not guaranteed, and Franklin Templeton debt mutual fund performance may change over time.
Who Should Invest in Franklin Templeton Debt Mutual Fund?
Franklin Templeton debt mutual fund is appropriate for cautious investors looking for capital growth and consistent income. These funds could add stability to an equity-oriented portfolio as they are more stable than equity funds. Liquid funds are ideal for investors that want high liquidity from their investments. Franklin Templeton debt mutual fund schemes may be the most tax-efficient ones for long-term investors in higher tax bands.
Things To Consider Before Investing in Franklin Templeton Debt Mutual Fund
Franklin Templeton debt mutual fund schemes provide simplicity, dependable income, high liquidity, minimal risk, and largely predictable returns. The benefit of indexation, which becomes accessible for debt funds after three years, enables tax-efficient investments. However, certain things must be kept in mind before investing in the Franklin Templeton debt mutual fund.
Expense Ratio
The cost ratio is the total cost of all expenses incurred during the debt fund scheme’s operation. Since debt funds have lower returns or upside potential than equity mutual funds, the expense ratio is more important.
A direct plan should be the best choice for investors with low-cost ratios. Investors can determine the returns from debt funds after considering the cost ratio.
Duration and Maturity
Franklin Templeton debt mutual fund performance is susceptible to fluctuations in the interest rate the longer the adjusted period is, and vice versa. The modified period measures how sensitive a debt fund’s price is to fluctuations in interest rates. It illustrates how rising interest rates affect Franklin Templeton’s debt mutual fund NAV. Longer-term funds are more volatile than shorter-term funds.
Yield to Maturity
The yield to maturity of a debt fund is the anticipated return rate assuming that all of the securities in the portfolio are held until maturity. The investor would profit 9% if the portfolio remained the same until all of the holdings in the portfolio reached maturity, for instance, if the yield to maturity of a debt fund was 9%.
Interest Rates
The regime of interest rates has a significant impact on the appeal of debt funds. Bonds that are already issued are worth more in an environment with falling interest rates than bonds that were just issued. The value of previously issued bonds decreases as interest rates rise as investors prefer to invest in newly issued bonds with higher rates.
Credit Risk Portfolio
In addition to interest rate risk, debt funds are also vulnerable to credit risk. Debt securities are rated by credit rating organisations based on the issuer’s creditworthiness and repayment capacity.
The “best” and least credit-risky fixed-income investments are those rated AAA. A ‘C’ credit rating indicates that a security is likely to default.
Tax on Franklin Templeton Debt Mutual Fund
A debt fund investment made towards different fixed-income securities has different tax implications. The tax on Franklin Templeton’s debt mutual fund is explained in the table below:
Details | Holding Period | Tax Rate |
Short-Term Capital Gains | Less than 36 months | Income Tax Slab Rate |
Long-Term Capital Gains | More than 36 months | 20% after indexation |
It must be noted that gains up to INR 1 lakh are tax-exempted.
Get your latest Credit Score, FREE
Most Popular on Urban Money
Franklin Other MF Categories
Most Trusted AMC
- Baroda BNP Paribas Mutual Fund
- Aditya Birla Sun Life Mutual Fund
- Canara Robeco Mutual Fund
- L&T Mutual Fund
- DSP Mutual Fund
- Quant Mutual Fund
- HDFC Mutual Fund
- HSBC Mutual Fund
- ICICI Prudential Mutual Fund
- JM Financial Mutual Fund
- Kotak Mahindra Mutual Fund
- LIC Mutual Fund
- Invesco Mutual Fund
- Quantum Mutual Fund
- Nippon India Mutual Fund
- SBI Mutual Fund
- Bandhan Mutual Fund
- Sundaram Mutual Fund
- Tata Mutual Fund
- Taurus Mutual Fund
- UTI Mutual Fund
- Mirae Asset Mutual Fund
- Bank of India Mutual Fund
- Edelweiss Mutual Fund
- Axis Mutual Fund
- Navi Mutual Fund
- Motilal Oswal Mutual Fund
- IDBI Mutual Fund
- PGIM India Mutual Fund
- Union Mutual Fund
- 360 ONE Mutual Fund
- Groww Mutual Fund
- PPFAS Mutual Fund
- IL&FS Mutual Fund (IDF)
- Shriram Mutual Fund
- IIFCL Mutual Fund
- Mahindra Manulife Mutual Fund
- WhiteOak Capital Mutual Fund
- ITI Mutual Fund
- Trust Mutual Fund
- NJ Mutual Fund
- Samco Mutual Fund
- Bajaj Finserv Mutual Fund
- Helios Mutual Fund
- Zerodha Mutual Fund
- Old Bridge Mutual Fund
MF Categories
Mutual Funds Calculator
Top 10 Amc Funds
- SBI Equity Mutual Fund
- SBI Hybrid Mutual Fund
- SBI Elss Mutual Fund
- SBI Debt Mutual Fund
- ICICI Equity Mutual Fund
- ICICI Hybrid Mutual Fund
- ICICI Elss Mutual Fund
- ICICI Debt Mutual Fund
- HDFC Equity Mutual Fund
- HDFC Hybrid Mutual Fund
- HDFC Elss Mutual Fund
- HDFC Debt Mutual Fund
- Nippon Equity Mutual Fund
- Nippon Hybrid Mutual Fund
- Nippon Elss Mutual Fund
- Nippon Debt Mutual Fund
- Kotak Equity Mutual Fund
- Kotak Hybrid Mutual Fund
- Kotak Elss Mutual Fund
- Kotak Debt Mutual Fund
- Axis Equity Mutual Fund
- Axis Hybrid Mutual Fund
- Axis Elss Mutual Fund
- Axis Debt Mutual Fund
- Aditya Equity Mutual Fund
- Aditya Hybrid Mutual Fund
- Aditya Elss Mutual Fund
- Aditya Debt Mutual Fund
- UTI Equity Mutual Fund
- UTI Hybrid Mutual Fund
- UTI Elss Mutual Fund
- UTI Debt Mutual Fund
- Bandhan Equity Mutual Fund
- Bandhan Hybrid Mutual Fund
- Bandhan Elss Mutual Fund
- Bandhan Debt Mutual Fund
- Mirae Equity Mutual Fund
- Mirae Hybrid Mutual Fund
- Mirae Elss Mutual Fund
- Mirae Debt Mutual Fund
Frequently Asked Questions (FAQs)
How is Franklin Templeton Mutual Fund doing?
Is Franklin Templeton Mutual Fund Safe?
Is it good to invest in equity funds?
Mutual Funds Guide
Get in-depth knowledge about all things related to Mutual Funds and your finances
International Mutual Funds
\International mutual funds are hidden gems in investment. These ideally allow you to invest in different countries, empowering you to diversify the portfolio across various economies, currencies, and sectors. Internatio
10 Best SIP Plans for Rs. 1000
The need for disciplined and strategic investment is becoming increasingly apparent as the financial industry develops and changes. Investing in your future has never been easier or more accessible than with the 10 best
How to Invest in SIP
Mutual funds are the new piggy banks. Everyone looking to multiply their wealth via mutual funds ponders over one perennial question – how to invest in a SIP? While it might sound very complex and tedious, it actually is
Best Investment Plan for 1 Year
For those seeking relatively quick returns or managing financial goals within a limited timeframe, mutual funds could make a substantial difference. Mutual funds, essentially pools of money managed by professionals, pro
How to stop a Mutual Fund SIP?
Investing in mutual funds through a Systematic Investment Plan (SIP) is a widely embraced strategy for those looking to gradually build wealth with disciplined and consistent contributions. However, life’s uncertainties
Withdrawing from Mutual Funds
When it comes to managing your investments, mutual funds are a popular choice for those looking to expand their portfolio and earn steady returns. However, there may come a time when you need to withdraw money from your