No they aren’t!
True. Its one investment. That is the impact in debt funds. Binary in some cases.
@RahulKhanna @sabyasachi_sadhu
This reminded me of an interesting discussion you guys had on this forum in the past:-
Don’t take tension it will be recovered.
On a different note, all avenues where you could possibly park excess funds is getting risky. Be it liquid funds, Ultra short bonds, Bank FDs.
Not all. One of the rarest funds in India.
Yes we going through the unprecedented passage of time, nothing can be trusted blindly.
Dear Investor,
This is to inform you that in accordance with SEBI regulation on creation of segregated portfolios (side pocketing), we have received Board of Trustees approval to create a segregated portfolio in respect of securities issued by VODAFONE IDEA LTD in Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund with effect from January 24 2020, due to a rating downgrade of certain securities issued by Vodafone Idea Ltd to CRISIL BB (Rating watch with negative implications) i.e. below investment grade by CRISIL.
All investors who were existing in the fund as on the date of the rating downgrade (credit event) will receive units in the segregated portfolio.
You will receive an account statement (within five business days) showing the value of your holdings in the main portfolio and segregated portfolio.
Investors are advised that creation of the segregated portfolio has no further impact on the NAV of the funds beyond the fair valuation of these securities done on January 16, 2020. Investors are reminded that this fair valuation only reflects the realizable price of the relevant securities on the date of valuation and does not indicate any reduction or write-off of the amount repayable by Vodafone Idea Limited.
The segregated portfolio will be listed on a stock exchange within ten working days. Any payment received from VODAFONE IDEA LTD will be promptly paid to investors holding units in the segregated portfolio.
We continue to engage with the Company in the best interests of our investors.
For more details, please refer to our press release (click here).
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I am new to these terms, can someone explain whats the mail say. Do we have to do anything ? @Bhuvan @RahulKhanna
Now that sidepocketing is announced by FT, can we see these segregated units somewhere in Coin? Anyone?
The segregated units were credited to my demat account yesterday. Have a few queries @Bhuvan
- Will these show up in the Coin app as well?
- If there are recoveries against the written off securities, will the proportionate proceeds be directly credited to the holders or merged with the main fund?
Answering my own question - these are showing up in my portfolio on Kite (not coin) and appear to be tradeable with 4.25L units on sale and exactly zdero buyers 
The units will initially reflect in your Kite Holdings since they are mentioned in the exchange file we receive for the securities.
To fix the discrepancy we calculate a factor that assigns a new “buy avg” for the current MF Scheme that you hold and proportionately a “buy avg” for the segregated scheme will be assigned. Post that the scheme will not reflect under your Kite holdings and the change will reflect in your console holdings.
As @morphique posted the AMCs mail
This means that the AMC will automatically debit the units of the “segregated scheme” from your holdings and the amount will be directly credited to your Bank Account.
You can also refer to this link to know more about what the AMC has to say in regards to the segregation.
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This is a classic case where people invest looking at previous returns alone and not the complete picture before investing.
if you look at all the funds in ultra short term segment. FT was leading in returns.
But had people looked at risk also, this would not have been the case.
Now look at the sharpe ratio
Their risk managment was not as good as compared to other UST funds.
Always look at the sharpe ratio and Alpha and how reputed the fund house is before investing.
Now if you have looked at the sharpe ratio , FT was way below.
I too have around 3 UST funds, but none of them have vodafone in their portfolio, because i selected the USTs based on sharpe and not previous returns alone.
I m sure many people are aware of this very basic return/risk model. But i hope this post helps someone who isn’t aware of this.
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I have invested in Franklin India Dynamic Accrual Fund and Franklin India Ultra
Short Bond Fund. As of now I have some entry in my kite for this with discrepancy. can anyone help me to solve this? What should be Avg. cost for this while doing manual entry?
(IF1GPD-MF,IF2GPD-MF,UBSG1GPD-MF these are instrument in holding)
I had a conversation with Franklin India, they said that they have credited the units of side pocketing on 24th January, but they are not visible in coin holdings, please look into it.
In kite it’s showing. Have a check pls
No it’s not available in my holdings.
can you explain more about sharpe ratio and alpha
Search my previous posts. I have already explained it.
Also tons of videos on this topic.