Franklin Templeton Investments (India) is planning to launch a new open-ended income fund Franklin India Banking & PSU Debt Fund (FIBPDF).
As per the mutual fund house, the new scheme seeks to provide regular income through a portfolio of debt and money market instruments consisting predominantly of securities issues by entities such as banks and public sector undertakings (PSUs), a company release said.
The new fund offer will open for subscription on April 2 and close on April 16, 2014.
"Domestic corporate bond market is just 14 per cent of GDP compared to 40-70% in various developed countries.
We believe there is huge potential for growth in the domestic bond market, thus providing attractive opportunities for the conservative, medium term investor.
"The new scheme aims to provide regular income to the investor, thus helping with wealth preservation," Managing Director (India and CEEMEA) of Franklin Templeton Investments, Vivek Kudva said.
The fund house also said the investment strategy of the new scheme is well-suited to current market conditions with a potential to deliver superior returns.