Franklin MF shutting 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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I have exposure to Ultra Short Bond Fund. They have a meeting around 12 Noon today after which their next course of action will be clearer. I am looking the space quite closely.

As mentioned in the mail they shared, they are most likely to sell assets in aforementioned funds and after deducting expenses will distribute amount among unit holders.

We are bound to get something out of it but capital loss looks definite.

today morning i place withdraw all liquid fund , tommrow they will wind up these category also , situation is worse in debt market , RBI decision will never work in this lockdown , better be safe money in your bank account

In liquid funds there are also some which only invest in govt security’s- like govt bond,psu company bonds generally they don’t default you can shift to that type of liquid funds

Created a post with FAQs here

Thanks for such detailed post. There is some respite that our investments will be returned in whatever proportion as it might be.

Few days back i was comparing liquid funds on few parameters.

Here again, Franklin failed as they have ZERO investment in SOV category as comapred to other funds and have high expense ratio.

Only those funds are included where Zerodha allows to pledge for margin.

Does this Franklin situation affect ABSL Liquid Fund as well?

i dont think so , depend upon lockdown extension … if lockdown extended may be , because of illliquidity

Will this eventually have spillover effects for liquid funds as well?

I redeemed my franklin liquid fund. Don’t wanna take risk.

I also withdraw today morning all liquid fund

Vishnu, do we have to first place an unpledge request before withdrawing Liquid Funds on Coin or we can directly withdraw ?

I unpledge first and then gave withdraw request , lets see.

I think it will get processed only after unpledging is completed by zerodha side.

I would advise not to keep more than 5 lakh in a single bank account regardless of whether it is a private bank or a PSU. Post budget 2020, upto Rs 5 lakh in your bank account is insured under DICGC (Deposit Insurance and Credit Guarantee Corporation) Act. This 5 lakh includes the principal and interest amount for your FD, Savings a/c, Current a/c all put together. In case the bank goes bankrupt you would get that Rs 5 Lakh. But if you have more cash and you wish to keep in bank account, I would recommend to distribute it among different bank accounts with a cap of Rs 5 Lakh max in each bank for safety.

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`ET NoW channel Franklin president is commenting they will try to refund all money but some loss want to bear , same problem having in Kotak , Birla, hdfc AMC they all are agreed the same problem we have because of no illliquidity in bond market Bid and ask price are lengthy spread these AMC also closely monitoring the situation ,

I think debt market in credit crunch right now , Franklin not Guaranteed full amount of refund in those wind schemes , they hope to do best of unit holders :anguished:

There is no guarantee of full amount will be refund to unitholders according to the AMC conversation
RBI is shocked about Franklin decision :scream:

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@Riyas_Ahamed @rupeshmandal

“By 2020, we’ll see the end of IRAs, mutual funds, pension, and retirement plans, and yes, it’s true, the stock market,” it says.

I read it last month , now im fearfull😨

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Will it be a problem for Equity MFs of other AMCs such as Axis/SBI in the longrun? What’s your take on it? @Riyas_Ahamed @rupeshmandal @vishnux

How you conveniently forget other predictions.

  • Sometime between 2008 and 2020, a sitting president will die in office of a heart attack. The vice president who assumes the presidency will declare war on North Korea in light of his accurate belief that the Asian country is in possession of weapons of mass destruction.

  • 2020 will mark the end of the US presidency and the executive branch of the government. America will finally be fed up by then and leave it at that.

  • By early 2020s, humans will reach an accord with extra-terrestrials.

Every prediction is like your next trade. It has a 50/50 chance and in some cases 0.

Lets just assume that stock markets end in 2020. What then? Where will people invest ?

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