Mumbai : 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.”
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 |