Franklin MF shutting Funds

Franklin Templeton is shutting 6 of its funds including ultra short duration fund. What will happen to existing investments?

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@Bhuvanesh @nithin @siva could you please comment on where do current investments stand amidst closing of funds?

Current investor has lost his money if he has invested in these schemes,the investor will receive money if whom the money was given,gives any intrest for the same

We’ll create a detailed post on what’s happening after we have complete details on what’s happening

K thanks :+1: can you make a post regarding liquid funds in depth

Karthik has already done that :slight_smile:

https://zerodha.com/varsity/chapter/the-debt-funds-part-1/

Ohh thanks for bringing that into my notice

This is a disaster for shareholders I think. All these schemes I think had the Yes bank Additional Tier 1 Capital bonds that got wipedout. Now they think they cant dig themselves out of the underperformance and they will permanently lose market share. They will most probably merge this into new schemes they will launch which will start new track record. Very gamey …

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So, I had some sums in the ultra short fund (stupid, I know :roll_eyes:) for which I had placed a redemption request on Coin. The units were debited from my demat account today but funds not received yet - I will be receiving the full value of my redemption, right? Or does this also somehow get wrapped up under this “lock down” too?

Preliminary update.

No redemptions and purchases will be allowed from tomorrow. All investments in the fund are essentially, for the lack of a better word, locked-in. The AMC will work towards liquidating the holdings and process as and when realized will be passed on to the unit-holders.

This is not going to be the first just "gating " of the bond funds & other funds . In Europe more than 76 such funds were gated (no redemptioons ) in March.
But most of them were real estate funds where they have no cash to pay redemptions. They have to sell assets which are not liquid. Same story in Indian corporate bond funds ( we have so many scams already ) possible.

What happens with the investment?

I have Rs.10k in Franklin Low Duration Fund,
How much time it can take, is there any probability that we may lose our funds completely.

Anyone can help please!

Is there any risk with Franklin India Liquid Fund - Direct Plan ? @Riyas_Ahamed , Should I redeem ?

Liquid fund have no problem , corporated debt funds and credit risk fund are problem now

@vishnux i am trying to withdraw from liquid fund the situation is going worse , better safe then sorry ,

keeping a half amount in bank is safe now , only PSU bank SBI

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I mean will there be any problem to franklin in future ?

No nothing problem for franklin its AMC , the problem for all mutual fund not only Franklin ,
before vodafone fone side pocket by franklin first , later reliance and birla done

franklin is doing first to wind up because safety of unit holder , franklin is trying to protect unit holder , other mutual fund follow soon

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You told no problem, but why withdrawing ? Should I also withdraw all liquid funds ?

the lockdown continue , the situation i seeing going to worse , i told better safe then sorry , i will always in better safe side , brokers also not safe at this movement , i will withdraw and keep money in SBI for few more month

only debt mutual fund have problem , equity no problem , better i will go to withdraw all liquid fund and keep my money in SBI bank for few more month , no trading also , keep money in SBI FD for few more days, its my decision

The situation is going to worse i believe , every day virus killing 5k + , i dont know what will happen , non imaginable
no liquidity in debt market , its concern

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