Franklin Templeton (India) today announced the launch of its open-ended short term debt scheme - Franklin India Short Term Fund (FISTF).
The fund aims to invest across high-quality corporate debt securities, State Development Loans (SDLs), government securities, and money market instruments, while maintaining a portfolio Macaulay duration between 1 and 3 years.
The portfolio may predominantly comprise AAA and AA+ rated corporate bonds and sovereign securities.
FISTF will be managed by Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, together with Anuj Tagra and Rohan Maru, Vice Presidents and Portfolio Managers, India Fixed Income at Franklin Templeton.
The NFO for Franklin India Short Term Fund will be open for subscription from August 5, 2026, to August 11, 2026.
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “At Franklin Templeton India, we are committed to expanding our fixed income offerings to meet the evolving needs of our investors. The launch of Franklin India Short Term Fund underscores our focus on providing investors with a fixed income solution focused on high quality debt that balances income potential with prudent risk management. Backed by our experienced fixed income team and robust risk management framework, we believe Franklin India Short Term Fund is well positioned to help investors navigate evolving market conditions and achieve their short to medium term investment goals."
Commenting on the fund’s investment strategy, Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, Franklin Templeton, said, “Amid evolving macroeconomic conditions, the fixed income market continues to present selective opportunities, particularly at the shorter end of the yield curve where elevated yields, adequate liquidity, and supportive demand-supply dynamics remain favourable. Franklin India Short Term Fund is well-positioned to capitalize on these opportunities through a disciplined focus on high-quality corporate credit and active duration management. By dynamically navigating opportunities across the short- to medium-term segment of the curve, the fund aims to generate accrual-led returns while prudently managing interest-rate and credit risks, which could help deliver better risk-adjusted outcomes across market cycles.”
Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.
With $1.79 trillion in assets under management as of June 30, 2026, Franklin Templeton operates globally in more than 35 countries.
Franklin Templeton (India) is one of the largest foreign fund houses** in the country. It offers ranges of mutual fund schemes designed to cater to varied investor requirements and offering different investment styles to choose from.
It has offices in 41 cities and Collection Centers in over 100 locations across the country.
** Source: AMFI Website (based on AAUM as on June 30, 2026)
*Visit website http://www.franklintempletonindia.com for further details including details of AUM by geography.
Scheme Type: An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years.
The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Please refer to our website (https://www.franklintempletonindia.com/downloadsServlet/pdf/product-labels-jg9o5k7l) or latest Risk-o-meters of scheme and primary benchmark (Tier I) calculated in accordance with Para 6.16 and 6.17 of SEBI Master Circular on Mutual Funds dated March 20, 2026.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Statements/ opinions/recommendations in this communication which contain words or phrases such as “will”, “expect”, “could”, “believe” and similar expressions or variations of such expressions are “forward – looking statements”.
Actual results may differ materially from those suggested by the forward-looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risk, general economic and political conditions in India and other countries globally, which have an impact on the service and / or investments.
There may have been changes in matters which affect the security subsequent to the date of this communication.
The AMC, Trustee, their associates, officers or employees or holding companies do not assure or guarantee any return of principle or assurance of income on investments in these schemes.
Please read the Scheme Information Document carefully in its entirety prior to making an investment decision and visit our website http://www.franklintempletonindia.com for further details.
The information contained in this document is for general purposes only and not a complete disclosure of every material fact.
The Stocks, sectors and instruments mentioned herein are for explaining the concept and shall not be construed as an investment advice to any party.
The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy.
It should not be construed as investment advice to any party.
The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. The Sectors and instruments mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
The fund aims to invest across high-quality corporate debt securities, State Development Loans (SDLs), government securities, and money market instruments, while maintaining a portfolio Macaulay duration between 1 and 3 years.
The portfolio may predominantly comprise AAA and AA+ rated corporate bonds and sovereign securities.
FISTF will be managed by Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, together with Anuj Tagra and Rohan Maru, Vice Presidents and Portfolio Managers, India Fixed Income at Franklin Templeton.
The NFO for Franklin India Short Term Fund will be open for subscription from August 5, 2026, to August 11, 2026.
Speaking on the launch of the fund, Avinash Satwalekar, President, Franklin Templeton–India, said, “At Franklin Templeton India, we are committed to expanding our fixed income offerings to meet the evolving needs of our investors. The launch of Franklin India Short Term Fund underscores our focus on providing investors with a fixed income solution focused on high quality debt that balances income potential with prudent risk management. Backed by our experienced fixed income team and robust risk management framework, we believe Franklin India Short Term Fund is well positioned to help investors navigate evolving market conditions and achieve their short to medium term investment goals."
Commenting on the fund’s investment strategy, Rahul Goswami, Chief Investment Officer & Managing Director, India Fixed Income, Franklin Templeton, said, “Amid evolving macroeconomic conditions, the fixed income market continues to present selective opportunities, particularly at the shorter end of the yield curve where elevated yields, adequate liquidity, and supportive demand-supply dynamics remain favourable. Franklin India Short Term Fund is well-positioned to capitalize on these opportunities through a disciplined focus on high-quality corporate credit and active duration management. By dynamically navigating opportunities across the short- to medium-term segment of the curve, the fund aims to generate accrual-led returns while prudently managing interest-rate and credit risks, which could help deliver better risk-adjusted outcomes across market cycles.”
NFO Features
| Fund Description | Franklin India Short Term Fund |
| Type Of Scheme | The fund is an open-ended short-term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years |
| Investment Objective: | The objective of the Scheme is to achieve optimal returns over the short term by investing in a diversified set of debt and money market securities. However, there is no assurance that the investment objective of the scheme will be achieved. |
| NFO Dates | August 5, 2026 to August 11, 2026 |
| Scheme Re-opens For continuous Sale And Repurchase On | August 13, 2026 |
| Managed By | Rahul Goswami, Anuj Tagra and Rohan Maru |
| Minimum Amount | Rs 5000 and in multiples of Rs 1 thereafter |
| Benchmark | NIFTY Short Duration Debt Index A-II |
| Exit Load | Nil |
About Franklin Templeton
Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting edge technology.Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.
With $1.79 trillion in assets under management as of June 30, 2026, Franklin Templeton operates globally in more than 35 countries.
Franklin Templeton (India) is one of the largest foreign fund houses** in the country. It offers ranges of mutual fund schemes designed to cater to varied investor requirements and offering different investment styles to choose from.
It has offices in 41 cities and Collection Centers in over 100 locations across the country.
** Source: AMFI Website (based on AAUM as on June 30, 2026)
*Visit website http://www.franklintempletonindia.com for further details including details of AUM by geography.
Potential Risk Class
Risk-o-meter and Product LabelingScheme Type: An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years.
The above product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Please refer to our website (https://www.franklintempletonindia.com/downloadsServlet/pdf/product-labels-jg9o5k7l) or latest Risk-o-meters of scheme and primary benchmark (Tier I) calculated in accordance with Para 6.16 and 6.17 of SEBI Master Circular on Mutual Funds dated March 20, 2026.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Disclaimers
The information contained in this communication is not a complete representation of every material fact and is for informational purposes only.Statements/ opinions/recommendations in this communication which contain words or phrases such as “will”, “expect”, “could”, “believe” and similar expressions or variations of such expressions are “forward – looking statements”.
Actual results may differ materially from those suggested by the forward-looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risk, general economic and political conditions in India and other countries globally, which have an impact on the service and / or investments.
There may have been changes in matters which affect the security subsequent to the date of this communication.
The AMC, Trustee, their associates, officers or employees or holding companies do not assure or guarantee any return of principle or assurance of income on investments in these schemes.
Please read the Scheme Information Document carefully in its entirety prior to making an investment decision and visit our website http://www.franklintempletonindia.com for further details.
The information contained in this document is for general purposes only and not a complete disclosure of every material fact.
The Stocks, sectors and instruments mentioned herein are for explaining the concept and shall not be construed as an investment advice to any party.
The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy.
It should not be construed as investment advice to any party.
The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. The Sectors and instruments mentioned above are used to explain the concept and is for illustration purpose only and should not be used for development or implementation of any investment strategy. It should not be construed as investment advice to any party.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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