On a comeback trail, Franklin Templeton MF plans series of debt launches

Timeline not fixed, choice of fund will depend on investor demand

mutual fund

With six of its schemes shut and liquidated, the fund house’s debt assets have fallen sharply to Rs 2,568 crore at the end of 2023 compared to Rs 66,900 crore at the end of 2019

Abhishek Kumar Mumbai

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Franklin Templeton Mutual Fund (MF) plans to launch half a dozen schemes in the debt space as it looks to bury the ghost of 2020, when it had shuttered six of its debt funds leading to a crisis of confidence among its investors.

“We are looking to launch a series of funds in the debt space. The focus will be on having a consistent repeatable process and delivering the right outcome for investors. We will probably start seeing results this year,” said Avinash Satwalekar, President, Franklin Templeton — India.

With six of its schemes shut and liquidated, the fund house’s debt assets have fallen sharply to Rs 2,568 crore at the end of 2023 compared to Rs 66,900 crore at the end of 2019.

However, the fund house remains a major player in the equity space. The fund’s total assets under management (AUM) as of December 2023 stood at Rs 84,240 crore, almost 90 per cent of which was in active equity schemes.

The US-headquartered fund house had recently reshuffled its debt investment team and brought in Rahul Goswami as the head of fixed income investments. Goswami was previously at the helm of debt investments at ICICI Prudential AMC.

On Tuesday, the fund house unveiled a postage stamp to celebrate the completion of 30 years of the Franklin India Bluechip Fund and Franklin India Prima Fund.

“Our journey in India has been nothing short of exceptional. Through highs and lows, we've remained steadfast in our commitment to the Indian market – investing in a strong talent pool, working with the distribution community to increase investor awareness, and growing our footprint across the length and breadth of the country. Through these efforts we have built a connection with our valued investors and trusted partners. This commemorative customised postage stamp is a testament to this bond we share with all who have entrusted us with their dreams and aspirations," said Jenny Johnson, President & CEO, Franklin Templeton.

Over the past three decades, Franklin India Bluechip Fund and Franklin India Prima Fund have grown over 200 times at a compound annual growth rate (CAGR) of over 19 per cent, showcasing the benefits of compounding and staying invested over the long term, the fund house said in a press release.

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First Published: Feb 13 2024 | 7:07 PM IST

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