Franklin India Credit Risk Fund Review: Plans, NAV, Returns and Portfolio Analysis 2026

Franklin India Credit Risk Fund is a credit risk fund offered by Franklin Templeton Mutual Fund, available in Direct and Other Plans across Growth, IDCW. The scheme aims to generate regular income and capital appreciation by investing at least 65% of the portfolio in AA and below rated corporate bonds, taking on higher credit risk in exchange for potentially higher yields. With multiple variants, Franklin India Credit Risk Fund lets investors choose between different cost structures and payout approaches within the same base scheme.

This article reviews Franklin India Credit Risk Fund across all its available plans and options, covering the latest NAV, expense ratio, portfolio approach, performance, exit load and investor suitability, based on publicly available data as of August 2026.

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Franklin India Credit Risk Fund Plans and Options Available

Franklin India Credit Risk Fund is offered across 4 scheme codes. The table below lists all available variants with ISIN codes and latest NAV figures.

Scheme Code	Plan	Option	ISIN (Growth / Payout)	ISIN (Reinvestment)	NAV (Rs)	NAV Date
118553	Direct Plan	Growth	INF090I01JL3	-	25.565	11-Jun-2023
118552	Direct Plan	IDCW	INF090I01JJ7	INF090I01JK5	14.0105	11-Jun-2023
116153	Other Plan	Growth	INF090I01ET7	-	25.3348	11-Jun-2023
116154	Other Plan	IDCW	INF090I01ES9	INF090I01ER1	13.5858	11-Jun-2023

Investment Objective and Portfolio Approach

Franklin India Credit Risk Fund seeks to generate regular income and capital appreciation by investing at least 65% of the portfolio in AA and below rated corporate bonds, taking on higher credit risk in exchange for potentially higher yields.

In terms of portfolio construction, the scheme holds primarily corporate bonds rated AA and below, seeking higher yield by accepting higher issuer credit risk compared with investment grade funds.

Franklin India Credit Risk Fund Performance and Returns

Franklin India Credit Risk Fund has delivered returns that are dependent on the fund manager's portfolio decisions, market conditions and the expense ratio differential between plans; investors should check the latest factsheet for current figures. Performance across individual plans and options may vary slightly due to differing expense ratios and whether gains are paid out under the IDCW option or reinvested under the Growth option.

The Direct Plan of any mutual fund typically delivers a slightly higher return than the Regular Plan of the same scheme over time, since it charges a lower expense ratio by excluding distributor commission. Investors should review the latest scheme factsheet from the AMC for current performance figures.

Direct Plan vs Regular Plan: Key Differences in Franklin India Credit Risk Fund

The Direct Plan of Franklin India Credit Risk Fund is available for investors transacting directly with the AMC or through a registered investment advisor, and carries lower than the Regular Plan of the same scheme, since it excludes distributor commission. The Regular Plan carries not independently verified; investors should check the latest expense ratio on the AMC website or Univest Screener.

Over longer holding periods, the compounding effect of this cost difference can be meaningful, which is why cost conscious investors often prefer the Direct Plan when they are comfortable transacting without distributor support.

Growth Option vs IDCW Option in Franklin India Credit Risk Fund

The Growth option of Franklin India Credit Risk Fund reinvests any gains back into the scheme NAV, supporting long term wealth compounding for investors who do not need periodic payouts.

The IDCW option of Franklin India Credit Risk Fund distributes available surplus to unit holders according to the chosen frequency, subject to the fund house declaring a distribution. Payouts under any IDCW option are not guaranteed and depend on distributable surplus.

Expense Ratio and Exit Load

The expense ratio for the Regular Plan of Franklin India Credit Risk Fund is not independently verified; investors should check the latest expense ratio on the AMC website or Univest Screener, while the Direct Plan carries lower than the Regular Plan of the same scheme, since it excludes distributor commission. This is the annual fee deducted from the scheme's assets.

The exit load on Franklin India Credit Risk Fund is a meaningful exit load (often around 1% to 2%) for redemptions within 1 to 2 years, since credit risk funds are designed for patient investors; exact terms should be confirmed in the scheme information document.

Who Should Consider Franklin India Credit Risk Fund

Conservative income seekers. The scheme suits investors looking for stable income with lower volatility than equity funds.

Medium term investors. A holding period matching the scheme's duration target is generally advisable for the scheme.

Investors stepping down risk. The scheme can be suitable for investors shifting from equity to debt as they approach a financial goal.

Key Risks in the scheme

Credit risk. The scheme deliberately holds a significant proportion of AA and below rated bonds, which carry a higher probability of default compared with investment grade funds.

Liquidity risk. Lower rated bonds can be harder to sell quickly in a risk-off market environment without taking a price haircut.

Interest rate risk. Changes in credit spreads and benchmark rates both affect the NAV of {kw}.

Mark to market risk. Any credit event or downgrade in the underlying portfolio can trigger a sharp fall in NAV.

How to Invest in Franklin India Credit Risk Fund

Investors evaluating Franklin India Credit Risk Fund should begin by deciding between the Direct and Regular Plan, and between the Growth option for long term compounding and the IDCW option for periodic payouts.

Completing KYC through a SEBI registered intermediary or the AMC portal is mandatory before investing for the first time. Investors who have existing KYC registration can proceed directly.

Investment in Franklin India Credit Risk Fund can be made as a lump sum or through a Systematic Investment Plan of at least Rs 1,000 lump sum for most credit risk funds, followed by regular monitoring of NAV and portfolio composition at least quarterly.

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Conclusion

Franklin India Credit Risk Fund is a credit risk fund scheme from Franklin Templeton Mutual Fund available across 4 plan and option variants, giving investors flexibility in cost structure and payout approach. The representative NAV of Rs 25.565 for the Direct Plan Growth option as on 11-Jun-2023 reflects the scheme's performance since launch. Investors should review the latest scheme information document and consult a SEBI registered advisor before investing.

Frequently Asked Questions on Franklin India Credit Risk Fund

What plans and options are available in Franklin India Credit Risk Fund?

Ans. Franklin India Credit Risk Fund is available in Direct and Other Plans and Growth, IDCW, giving investors 4 scheme codes to choose from depending on cost preference and payout requirements.

What is the latest NAV of Franklin India Credit Risk Fund?

Ans. The latest NAV of the Direct Plan Growth option of Franklin India Credit Risk Fund is Rs 25.565 as on 11-Jun-2023. NAVs for all plan and option variants are updated at the end of every business day.

What is the investment objective of Franklin India Credit Risk Fund?

Ans. The primary objective of Franklin India Credit Risk Fund is to generate regular income and capital appreciation by investing at least 65% of the portfolio in AA and below rated corporate bonds, taking on higher credit risk in exchange for potentially higher yields.

What is the difference between the Direct and Regular Plan in Franklin India Credit Risk Fund?

Ans. The Direct Plan of Franklin India Credit Risk Fund carries lower than the Regular Plan of the same scheme, since it excludes distributor commission, excluding distributor commission. The Regular Plan carries not independently verified; investors should check the latest expense ratio on the AMC website or Univest Screener. The lower cost of the Direct Plan can improve long term compounding.

What is the expense ratio of Franklin India Credit Risk Fund?

Ans. The Regular Plan of Franklin India Credit Risk Fund carries an expense ratio of not independently verified; investors should check the latest expense ratio on the AMC website or Univest Screener, and the Direct Plan carries lower than the Regular Plan of the same scheme, since it excludes distributor commission. The exact current figure can be confirmed in the latest AMC factsheet.

What is the exit load on Franklin India Credit Risk Fund?

Ans. The exit load on Franklin India Credit Risk Fund is a meaningful exit load (often around 1% to 2%) for redemptions within 1 to 2 years, since credit risk funds are designed for patient investors; exact terms should be confirmed in the scheme information document. Investors should confirm this in the current scheme information document before redeeming.

Who should invest in Franklin India Credit Risk Fund?

Ans. Franklin India Credit Risk Fund can suit investors whose financial goals, risk appetite and investment horizon align with the credit risk fund category. Consult a SEBI registered advisor to assess personal suitability.

Is Franklin India Credit Risk Fund a good investment?

Ans. Franklin India Credit Risk Fund can be appropriate for investors who understand the credit risk fund category mandate and are comfortable with the associated risk. Past performance does not guarantee future returns.