I am interested in investing in Franklin Templeton Ultra Short Bond – Super Institutional Plan – Growth – Direct. I would like to know how safe this liquid/bond fund is?
Franklin India Ultra Short Bond Fund, as the name suggests, is an ultra short duration scheme. These schemes are ideal to park money for a few months. According to the new Sebi caetgorisation, these schemes are mandated to invest in debt and money market portfolio with a Macualay duration of three to six months.
As you know debt mutual funds are going through a rough patch because of a series of setbacks suffered by some schemes due to default/likely default by some bond issuing companies. The scenario is likely to continue for some time.
However, to be fair to Franklin India Ultra Short Bond Fund, the scheme has been consistently on top of the chart in various tenures. Despite the doubter’s claims, the scheme has so far managed to hold its ground.