Franklin India Government Securities Fund

Franklin India Government Securities Fund (FIGSF) is an open ended gilt scheme which primarily invests in government bonds, offering a relatively safe investment option to investors. It is a flexible fund which provides investors an opportunity to choose an appropriate investment period. The only risk factor involved here is related to changes in interest rates and nil credit risk, making it a low risk investment.

Type or nature of fund

Franklin India Government Securities Fund is an open ended dedicated gilt scheme.

Investment objective

The primary objective of Franklin India Government Securities Fund is to invest in government issued sovereign securities to provide credit risk free returns to investors.

Fund information

Inception date

FIGSF Composite Plan : 21 June, 1999

FIGSF PF Plan : 7 May, 2004

FIGSF Long Term Plan – 7 Dec, 2001

CRISIL rank CRISIl ranks this 3 in Gift long category

•Composite Plan

•Long Term Plan

•Direct Composite Plan

•Direct Long Term Plan

•PF Plan

•Direct PF Plan

Entry load Nil
Exit load

FIGSF – CP/PF Plan – 0.50% if redemption is within 3 months of allotment date

FIGSF – LT Plan - Nil

Minimum investment

FIGSF CP/LT – Rs 10,000 and Rs 25,000

FIGSF PF – Rs 25,000

Product label – Risk and target investors Low Risk product designed for investors looking for medium term capital appreciation with their current source of income through investments in Indian government securities.

I-Sec Composite Index for CP and PF

I-Sec Li-BEX for LT

  • I-Sec BEX is a benchmark for government securities and represents the Indian Gilt market.
SIP (Systematic Investment Plan) •Rs 1,000 (12 SIP investments of Rs 1,000 each - minimum)
SWP (Systematic Withdrawal Plan) Yes. Investors with a minimum account balance of Rs 25,000 can opt for SWP which offers a choice between a monthly or quarterly withdrawal mode.
STP (Systematic Transfer Plan) Yes. Any redeemed unit needs to be reinvested in another plan.
Redemption Minimum Redemption Amount – Rs 1,000.
Taxation (on investment and on redemption) Investors are advised to consult their tax consultant to get a clear picture of tax implications arising out of their investment in this scheme.

Fund managers

Franklin India Government Securities Fund has two fund managers, Mr. Sachin Shankar Padwal Desai and Mr. Umesh Sharma.

Mr. Sachin Shankar Padwal Desai

Designation and Work

  • Mr. Desai is the VP - Fixed Income at Franklin Templeton India and is in charge of fixed income funds.
  • Mr. Desai has over 10 years of experience in investment, having previously worked with ICICI Bank.


  • Mr. Desai completed his engineering from Government College of Engineering, Pune and PGDM from IIM, Bangalore.

Mr. Umesh Sharma

Designation and Work

  • Mr. Sharma is the VP of Fixed Income at Franklin Templeton India and is in charge of locally managed and distributed debt products.
  • Mr. Sharma has almost 10 years of experience in this field, having worked in different financial companies to tone his skillset before joining Franklin Templeton.


  • Mr. Sharma is a qualified CA, CS and CFA Charterholder from USA.

Investment philosophy or strategy

Franklin India Government Securities Fund follows a simple and risk free strategy wherein fund managers invest in government securities or securities with unconditional guarantees by the government. It seeks to widen the horizon by investing in different plans like Treasury Plan, PF Plan, Long Term Plan and Composite Plan and actively manages the funds keeping in mind market conditions. This investment policy is traditionally risk free and offers investors peace of mind.

Portfolio – Sector / Top 10 holdings

Securities Description Rating Percentage
8.60% of GOI 2028 Sovereign 31.58
9.20% of GOI 2030 Sovereign 27.81
9.23% of GOI 2043 Sovereign 25.81
8.17% of GOI 2044 Sovereign 12.36
8.17% of GOI 2044 (Long term) Sovereign 8.22
8.40% of GOI 2024 Sovereign 6.21
8.60% of GOI 2028 Sovereign 4.56
8.15% of GOI 2026 Sovereign 4.34
8.27% of GOI 2020 Sovereign 1.08
8.27% of GOI 2020 (PF) Sovereign 1.22

Risk measures – Last three years

The risk measures for various criteria are mentioned below (as on August 28, 2015).

Sharpe ratio (Annualized) 1.42
Alpha -0.5
Beta 1.25
Standard Deviation 1.42


AUM (as of May 29, 2015)

FIGSF CP – Rs 82.31 crores

FIGSF LT - Rs 388.41 crores

NAV (as of 07/09/2015)

Dividend – 11.48

Growth – 33.48

Direct Dividend – 34.04

Direct Growth – 11.80


The returns provided by Franklin India Government Securities Fund in comparison to market returns are shown in the table below.

Period Scheme returns I-Sec Li-BEX CRISIL 10 year Gilt index
March 2012 – March 2013 9.46% 13.28% 11.25%
March 2013 – March 2014 0.62% 1.60% -1.01%
March 2014- March 2015 20.46% 20.08% 14.63%

Expense Ratio

The current expense ratio of Franklin India Government Securities Fund is 1.73% for regular and 0.48% for direct (As of July 31, 2015).

Expert view of the fund

Franklin India Government Securities Fund is a low risk investment option for individuals looking to invest their money without having to worry about their investments failing. The fund offers decent growth options, depending on investment period and has performed comparatively well since its inception. Multiple plan options enable investors to choose a plan which best suits their needs, offering them flexibility and convenience. This plan can be a good investment option for individuals who have extra money and who would rather invest it in low risk funds.

How to apply

Individuals looking to invest in this fund can do so either through the official website of Franklin Templeton India or by visiting an anuthorised branch. They will have to fill up relevant forms, providing some basic information like mobile number, email id, PAN and Bank details in order to successfully register themselves for this fund.

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