Franklin India Medium to Long Duration Fund(IDCW)
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Business Overview
Franklin India Medium to Long Duration Fund (IDCW) is a dynamic debt mutual fund designed for investors seeking stable income over a medium to long-term horizon. This fund primarily invests in government and corporate bonds, making it suitable for those looking to balance risk and return. With a focus on capital preservation, it aims to provide consistent returns while managing interest rate fluctuations. Ideal for conservative investors and those planning for future financial goals, this fund stands out for its professional management and strategic asset allocation.
- Focuses on medium to long-term debt instruments
- Suitable for conservative investors
- Aims for stable income and capital preservation
- Managed by experienced professionals
- Helps in planning financial goals effectively
Investment Thesis
Franklin India Medium to Long Duration Fund (IDCW) stands out due to its strong promoter credibility, a robust growth trajectory in digital services, and attractive valuations compared to peers. This fund offers a reliable investment avenue for Indian retail investors seeking stable returns in a volatile market.
- Managed by Franklin Templeton, a globally recognized asset management company with a strong track record.
- Digital services are expanding rapidly, providing significant growth opportunities for the fund's investments.
- Currently trades at attractive valuations, offering potential for higher returns compared to similar funds.
- Focus on medium to long-duration bonds, which can provide stability in uncertain economic conditions.
- Well-diversified portfolio aimed at minimizing risk while maximizing returns for investors.
Opportunity vs Risk
- Stable income through medium to long duration bonds
- Potential for capital appreciation
- Diversification in fixed income portfolio
- Professional fund management expertise
- Interest rate fluctuations impact returns
- Credit risk from bond issuers
- Market volatility affecting NAV
- Liquidity risk in bond market
Peer Perspective
Franklin India Medium to Long Duration Fund trades at a slight premium compared to peers like HDFC and ICICI funds. A stable margin and consistent growth in returns could trigger a rerating.
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10BusinessHighThe fund operates in a sector that is adapting to changing market conditions, but lacks a strong competitive moat.
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10GrowthHighRevenue and profit growth have been inconsistent, with fluctuations in performance.
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10ProfitabilityHighROE and ROCE are average, with operating cash flow sometimes lagging behind net profit.
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10ValuationHighValuation metrics are in line with peers, but not particularly attractive.
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8BalanceHighDebt levels are manageable, but liquidity could be improved.
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7GovernanceHighPromoter holding is decent, but there are concerns about transparency in disclosures.
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6DriversGoodGrowth drivers are present, but execution risks remain significant.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity affecting price action.