25 September, 2020

Market Jitters In Time Of Corona: What Next After Collapse Of Franklin Templeton Mutual Funds?

With the RBI’s swift action to forestall any turbulence, there is hope that Franklin Templeton is a one-off case during this lockdown phase

Market Jitters In Time Of Corona: What Next After Collapse Of Franklin Templeton Mutual Funds?
outlookindia.com
2020-05-01T18:04:49+05:30

“A bull market is when you get a stock tip from your barber…a bear market is when you get a haircut from your fund manager.” Thus tweeted corporate leader Lloyd Mathias in a particularly jocular vein on April 20. Little did he foresee the prescience of his witticism. Three days later, the lockdown necessitated by the COVID-19 pandemic marked its first casualties in the Indian financial market. The closure of six debt schemes by the Franklin Templeton (FT) Mutual Fund has resulted in eroding the confidence of investors to a large extent and has created a sort of crisis of confidence in the market. These six debt schemes together have Assets Under Management (AUM) worth over Rs 28,000 crore.

Through a notice dated April  23, 2020, FT MF announced its decision to wind up six of its schemes—Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual Fund and Franklin India Income Opportunities Fund.

As per the fund house,...

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