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Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth - Get latest updates on NAV, Dividends, Returns, Performance, Risks & Portfolio. Invest now! Paisabazaar INR 10000 1 rating rating rating rating rating Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth 3 5

PB Recommended Debt Ultra Short Duration

PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth

1 Yr return

4.63%

3 Yrs CAGR returns

7.34%

5 Yrs CAGR returns

8.21%

NAV as on 02 Jul

₹ 28.22 by 0.01 ( 0.04%)

Expense ratio

0.07

Fund Size (Cr)

₹ 19090.98


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Performance Graph*
Returns Calculator
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If ₹10000 invested for 1

Estimated returns*

₹ 0

with % annual returns

Direct Funds
Estimated amount
₹ 10,27,000
Regular Funds
Estimated amount
₹ 9,91,000

* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More

The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.

investment objective

The scheme aims to enhance income consistent with a high level of liquidity, through a judicious portfolio mix of money market and debt instruments.

Tax Implications

Returns are taxed at Marginal rate of taxation, if you redeem before 36 months. Gains on debt mutual funds held for 36 months or more are treated as long-term capital gains and taxed at the rate of 20% after indexation benefits. Indexation is a technique to adjust tax payments by employing a price index which adjusts for inflation.

riskometer
Top Holdings
Top 10 Sectors %
Financial 50.75
Construction 10.94
Engineering 9.38
Metals 8.93
Energy 7.89
Communication 3.03
Others 2.92
Health Care 2.64
Services 2.25
Automobile 1.21
Top 10 Sectors %
Minerals 8.14
Invest.Services 7.57
Misc. Fin.services 5.58
Misc. Fin.services 4.45
Misc. Fin.services 4.03
Cement 3.89
Communication Equipt. 3.03
Power Projects 2.96
Others 2.92
Drugs & Pharma 2.64
Fund house details
Fund House Franklin Templeton Mutual Fund
Fund Manager Pallab Roy
Fund Setup Date 01 Jan 2013
Address Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone Road (West)
Contact 1-800-4254255/ 60004255
Email ID service@templeton.com
More About This Fund

About Franklin India Ultra Short Bond Fund

Franklin India Ultra Short Bond Fund is an open-ended mutual fund that invests in fixed income securities which have their average maturity period ranging between 3 to 6 months. It offers high returns among Debt Funds as it has low Macaulay Duration and high liquidity with low risks. Because of its short maturity, it is less affected by interest risks. It is a good alternative to bank FDs.

The Ultra Short Duration Fund endeavours to strike a balance between optimum returns and high liquidity through investments in a judicious mix of short term debt and money market instruments. Investors with moderate risk tolerance can invest in this fund.

Who Should Invest?

  • Conservative investors who chose consistent returns and safety over high risk return portfolios
  • Investors who want to park their money for a short time so as to withdraw it soon can invest in this highly liquid fund
  • Investors who are looking for better options to bank deposits
  • Investors wanting to enhance their regular income

Risks

Franklin India Ultra Short Bond Fund is almost immune to market risks. Because of its low duration, risk of changes in rates of interest is almost negligible. However, no fund guarantees capital gains. There is less but chances of credit risk.

Will You Pay Tax?

Franklin India Ultra Short Bond Fund is taxed as per the norms of Debt Funds. If an investor has made a capital gain of ₹50,000 on investment in a debt mutual fund and withdraws the amount before 3 years of investment, Short Term Capital Gains Tax would be levied, as per the income tax slab of the investor. ₹50,000 would be added to the taxable income of the investor and taxed accordingly.

If an investor withdraws the investment including capital gains post 3 years of investment, Long Term Capital Gains Tax of 20% is levied, with the benefit of indexation.

Indexation reduces the value of overall Long Term Capital gains to reflect the effect of inflation on your investment.

To calculate the final value of capital gains post indexation, we use the government’s Cost Inflation Index (CII) in the following formula:

Indexed cost of Acquisition = Investment Amount * (CII of the year of withdrawal/ CII of the year of investment)

Suppose the investment amount is ₹70,000 in the year 2016 and the withdrawal amount is ₹1 Lakh. The value of capital gains is ₹30,000 before indexation

Indexed Cost of Acquisition= 70000* (280/254) = 77165.35

Note: CII in the year 2015 = 254

CII in the year 2018 = 280

Final Value of Capital Gains= 100000- 77165.35 = 22834.65

Tax Payable = 20% of 22834.65 = 4566.93

No Tax is charged as long as you hold the units.

How to invest in Franklin India Ultra Short Bond Fund?

  • Sign Up/Sign In to Paisabazaar.com and go to ‘Direct Mutual Funds’
  • Click on the section of Franklin India AMC
  • Type and search directly by the name of Franklin India USB Fund. Once it opens up, look at the details. You can also compare similar funds as well as use Returns Calculator
  • Click on ‘Invest Now’, select either Lump sum or SIP

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Frequently Asked Questions (FAQs)

Q. Should you invest in Franklin India US Bond Fund?

Ans. If your financial goals with the suitability of the investors who should invest in this fund as mentioned above then you must. If you are looking for high returns and can take some higher risks then you may go for Equity Funds.

Q. Is it beneficial to invest via open-ended (lumpsum) or SIP?

Ans. SIP (Systematic Investment Plan) is considered an efficient and convenient mode of investment that is beneficial in the long term investment. It also reduces financial burden as one needs to invest periodically and provides the benefit of rupee averaging cost. However, it has limited benefits in Debt Funds and very negligible in case of Ultra Short Term Funds. So, investment in a Lump Sum in Franklin India Ultra Short Bond Fund is preferable.

Q. What is the entry load for this fund?

Ans. There is no applicable entry load on the aforementioned fund.

Q. What is the Exit Load for this scheme?

Ans. There is no Exit Load on this fund.

Q. Is there any lock-in period for investment in this scheme?

Ans. No. Investors can redeem their investment as per their wish and needs.

Q. What is the fund manager’s style of investment?

Ans. Pallab Roy and Santosh Kamath manage the fund and make sure the investments are done in A rated debentures and securities so as to avoid credit risk and earn maximum returns from this short term Debt Fund.