The last few months were unfavourable for the equity market which can still be witnessed in the 2nd month of 2019. Many reasons contributed to the underachievement of stock indices which further led to curtailment of equity mutual funds. The elections are coming in 2 months which can change the course anyway and hence the market is likely to remain volatile. In such conditions, debt schemes can play a key role to assist the investors in overtaking the volatile market conditions. Franklin Templeton Mutual Fund is known for providing top-notch debt schemes which can easily surpass the volatile market conditions if informed decisions are taken by the investors.

Franklin India Income Opportunities Fund
It is a medium duration debt fund which uses the securities with moderate credit ratings and high rate sensitivity. Almost 90% of the securities are invested in AA and lower credit ratings. It is a consistent performer and has provided some of the best returns in the category. It has a higher yield to maturity than the peers and can be instrumental for the investment of 3-4 years.

Franklin India Short Term Income Plan
This top performing debt fund is ranked as best in the category of a short duration debt fund. The fund manager invests in the securities of low credit ratings with medium rate sensitivity to increment the returns. The trailing returns of Franklin India Short Term Income Plan have been the highest in the category for a long time. The securities of this scheme have average maturity tenure of 2.6 years hence the investment in this scheme is suitable for 2-3 years.

Franklin India Low Duration Fund
As the name suggests, it is a low duration debt fund which is also considered as one of the best in the category. The portfolio includes debentures and structured obligations of mixed credit ratings. As the fund aims for income generation in short tenure, the rate sensitivity is kept lower. It is suitable for the investment of less than a year as the average maturity tenure of the instruments is 0.94 years.

Franklin India Ultra-Short Bond Fund - Super Institutional plan
This ultra short term debt fund has performed exceptionally well and has never gone behind any other scheme in the category in terms of returns. The reason behind higher returns is securities with lower credit ratings. Among the peers, it possesses securities with lower credit ratings. The average maturity tenure of the instruments is 0.52 years and hence the suitable tenure to invest in 6 months.

Franklin India Credit Risk Fund
This fund was previously known as Franklin India Corporate Bond Fund. The fund manager seeks for securities with reasonable credit ratings. Majority of the instruments are of A and below ratings. For the average maturity tenure of 2.93 years, it has a yield to maturity of 10.98% (as of 25th Feb 2019). The suitable tenure of investment can be anywhere between 1-3 years.

Who Should Invest?
The above mentioned top performing debt schemes of Franklin Mutual Fund can be chosen as a platform to secure your earnings and add capital appreciation on the invested amount. Equity investors can also take advantage of these funds by parking the capital and choosing the option of STP into the equity mutual fund. Franklin Templeton Mutual Fund provides the best debt schemes in multiple subcategories.

Debt schemes are suitable for conservative investors who seek decent capital appreciation with low risk. The debt schemes of Franklin Mutual Fund are however slightly risky as the credit ratings are lower but can easily surpass the volatility in 2019.

Author's Bio: 

Dishika Baheti is a financial writer associated with MySIPonline who is an expert in analysing the potential debt schemes of mutual fund asset management companies in India.