Given the current FMP scenario, is Franklin India Short-Term Fund a viable option for a period of two to three years for someone around 60 and wants to go for a safe investment option?
- Sudhir
Yes, it has turned out to be a good fund. Besides, Franklin has so far proven to be an outstanding fixed-income manager.
However, I think spreading helps in reducing your risk. Make sure that you have already exhausted your maximum permissible limits in the Post Office Monthly Income Scheme (POMIS) and Senior Citizen Savings Scheme (SCSS). Through these schemes, you are actually lending your money to the Government of India and therefore, the likelihood of anything going wrong is almost nil. These are absolutely safe. Then comes the supplement fixed-income options like mutual funds. Open in design and sensible fixed income management have made Franklin India Short-Term Income Plan a good option.
It all boils down to de-risking yourself. So, if you are planning to invest a substantial amount of money, then you may choose one more fund.
This article was originally published on June 11, 2019.
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