Franklin Templeton plans Fixed Horizon Fund-Series IV

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Franklin Templeton Mutual Fund plans to launch Templeton Fixed Horizon Fund -Series IV, which will offer six plans with a choice of two sub-plans, retail and institutional, each with a growth and dividend option.

The fund house is eyeing Rs 1 crore in each plan as minimum subscription and would retain any excess subscription, according to the offer document posted today on the Securities and Exchange Board of India web site.

The scheme, is a close-ended income fund, seeks to generate returns and reduce interest rate volatility through a portfolio of fixed income securities with a maturity profile generally in line with the fund's duration.

The scheme would invest in different types of securities and securitised debt, which carry different levels and types of risks. Accordingly, the scheme's risk may increase or decrease depending upon its investment pattern.

New fund offers for these plans will commence any time within six months from the date of clearance of the offer document by SEBI.

During the NFO period, the units will be offered at the face value Rs 10 per unit. In order to provide liquidity to investors, the fund proposes to provide repurchase facility at half-yearly intervals.

Each plan can be fully redeemed at the end of two years from its date of allotment. Investors can also avail of certain tax benefits under the scheme.

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