What happened to Templeton mutual funds?
Six Franklin Templeton debt funds were shut down by the management, due to redemption pressure and lack of liquidity in the secondary market for the underlying instruments. It was the decision of the AMC (asset management company) / MF Trust to close down the funds.
Is investment in mutual funds safe?
If you’re concerned that mutual funds are a type of dodgy investment, rest assured that they’re completely safe. No mutual fund house can steal your money because it is regulated and supervised by the SEBI (i.e. Securities and Exchange Board of India) and the AMFI (Association of Mutual Funds in India).
What is wrong with Franklin Templeton Mutual Fund?
The Securities and Exchange Board of India (Sebi) has directed Franklin Templeton MF to pay Rs 5 crore as penalty, return over Rs 450 crore collected as 22-month investment management and advisory fees, and imposed a two-year ban on launching new debt schemes for alleged irregularities in running six of its debt …
What happened to Franklin Templeton debt funds?
Templeton has wound up $4.1 billion of debt funds after a liquidity crisis. What happened? Franklin Templeton Mutual Fund has decided to wind up six debt mutual fund schemes.
How does frankfranklin Templeton manage risks?
Franklin Templeton holds a good reputation in managing risks. But how? It does this by lending the money to those institutions where the deal is risky but the yields are higher. But, the pandemic magnified all the risks in multi-folds. Remember, as mentioned above, the redemption requests were building in like a tornado!
Will Franklin fiasco hit my other debt mutual fund schemes?
So, play it very safe. Will it hit my other debt mutual fund schemes? Yes, the Franklin fiasco is likely to have an adverse impact on the entire debt mutual fund scenario. Most experts believe many investors are likely to get nervous and redeem their debt mutual funds in a hurry. It will put extra pressure on the debt market.
Is Franklin Templeton still committed to India?
Despite the current crisis, the US-headquartered fund house said it remained committed to the India business. “Franklin Templeton has a long history of over 25 years in India, with 33 per cent of our global workforce based there.