The Corona Virus incident had shaken the entire health. Many countries have declared a nationwide lockdown to prevent from spreading. It is not only posing serious threats to the health sector but also to the financial sector. Stock markets across the globe have made new bottoms. To address the economic concerns, RBI has made several announcements.
In these challenging times, Franklin Templeton has closed six debt funds. Should the investors be worried? Recently, I had attended a LIVE webinar where Mr. Sanjay Sapre, President of Franklin Templeton India had put forward his views and gave hope to the investors.
The following six debt fund schemes have been discontinued by the company:
- Franklin India Ultra Short Bond Fund
- Franklin India Short Term Income Fund
- Franklin India Credit Risk Fund
- Franklin India Low Duration Fund
- Franklin India Dynamic Accrual Fund
- Franklin India Income Opportunities Fund
So, now what will happen to these funds?
These funds will cease to exist after their holdings are sold. Investors can neither purchase new units nor redeem their holdings. Mr. Sapre said that the winding-up was started to preserve the value of investors’ investments. They were unable to continue with the schemes due to ‘liquidity crunch’.
Are the investors getting their money back?
In the webinar, Mr. Sapre had assured that the investors will be getting their money back. These funds were wound up to protect the wealth of the investors. Their money is secure, and they are trying their best to refund the money to the investors in the best possible time, after taking approval from the authorities and shareholders.
They are going to sell the securities, and explore all possible options to refund the money to the investors. The timeline will be posted on their website.
Is Franklin Templeton leaving India?
No, Franklin Templeton is not leaving India. They are present in India for more than 25 years. Their other schemes will continue to operate.
What do the investors need to do to get their money back?
Investors need not do anything. The company will contact them and let them know about the refund process.
You can listen to the webinar by clicking the play button.
Disclaimer: Mutual Fund investments are subjected to market risk. Please read the scheme related documents and consult your financial advisor before making any kind of investment.