Franklin India Low Duration Fund(IDCW)
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Business Overview
Franklin India Low Duration Fund (IDCW) is designed for investors seeking a stable income with lower interest rate risk. Ideal for conservative investors looking to park their funds for a short to medium term, this fund aims to provide reasonable returns while maintaining liquidity. Its diversified portfolio primarily invests in debt and money market instruments, making it a reliable choice for risk-averse individuals. With a strong track record and professional management, this fund stands out as a prudent option for wealth preservation.
- Designed for stable income
- Ideal for conservative investors
- Short to medium-term investment
- Diversified portfolio in debt instruments
- Strong track record and management
- Maintains liquidity for easy access
Investment Thesis
Franklin India Low Duration Fund (IDCW) stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. This fund is well-positioned to deliver consistent returns, making it a compelling choice for Indian retail investors seeking stability and growth.
- Managed by Franklin Templeton, a globally recognized asset management firm.
- Strong track record of performance and risk management.
- Digital services are expanding, enhancing investment accessibility.
- Valuation metrics indicate potential for upside compared to competitors.
- Ideal for investors looking for low-duration debt exposure with steady returns.
Opportunity vs Risk
- Stable income generation
- Low interest rate environment
- Diversification for fixed income
- Potential for capital appreciation
- Interest rate fluctuations
- Credit risk in bonds
- Market volatility impact
- Liquidity concerns in downturns
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10BusinessHighThe fund operates in a stable sector with a clear investment model but lacks a significant competitive moat.
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10GrowthHighThe fund has shown consistent revenue growth, but profit growth has been moderate.
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10ProfitabilityHighROE and ROCE are decent, but cash flow has been inconsistent compared to net profit.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighThe balance sheet is relatively strong with manageable debt levels.
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6GovernanceGoodPromoter holding is stable, but there are some concerns regarding disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain a concern.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.