Franklin India Ultra Short Duration Fund(IDCW Payout)
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Business Overview
The Franklin India Ultra Short Duration Fund is designed for investors seeking short-term investment opportunities with relatively low risk. This fund is ideal for those looking to manage liquidity while aiming for better returns than traditional savings accounts. It focuses on high-quality debt instruments, making it a reliable choice for conservative investors. With a strong track record and experienced fund management, it stands out in the fixed income space.
- Short-term investment horizon
- Focus on high-quality debt instruments
- Ideal for conservative investors
- Helps manage liquidity effectively
- Strong track record and experienced management
Investment Thesis
Franklin India Ultra Short Duration Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This fund is well-positioned to capitalize on the evolving market landscape, making it a compelling choice for retail investors seeking stability and growth.
- Backed by Franklin Templeton, a globally recognized asset management firm.
- Strong historical performance and risk management track record.
- Digital services are expanding, enhancing fund accessibility and investor engagement.
- Valuation metrics indicate strong upside potential relative to peer funds.
- Ideal for investors seeking short-term fixed income with lower risk.
Opportunity vs Risk
- Stable returns in low-rate environment
- Potential for capital appreciation
- Diversification for fixed-income portfolio
- Low interest rate sensitivity
- Credit risk from underlying securities
- Market volatility affecting NAV
- Interest rate fluctuations impact returns
- Liquidity risk in certain market conditions
Peer Perspective
Franklin India Ultra Short Duration Fund trades at a slight premium compared to peers like HDFC Ultra Short Fund and ICICI Prudential Ultra Short Fund; a sustained improvement in margin stability could trigger a rerating.
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10BusinessHighThe fund operates in a stable sector with moderate growth potential.
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10GrowthHighConsistent revenue growth but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers.
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7BalanceHighDebt levels are manageable, but liquidity is a concern.
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6GovernanceGoodPromoter holding is stable, but there are minor concerns over disclosures.
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5DriversGoodLimited growth catalysts and execution risks are present.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.