What is the problem with Franklin Templeton mutual fund?
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What is the problem 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 is Franklin Templeton crisis?
The Franklin Templeton crisis showed investors just how vulnerable debt mutual funds are to market fluctuations. Those who picked funds by looking at yield-to-maturity have got their fingers burnt. Investors are now likely to pay a lot more attention to risk while selecting debt mutual funds.
Why did Franklin Templeton fail?
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 not the first time that a mutual fund (MF) scheme faced redemption pressure.
Why Franklin Templeton closed mutual funds?
Franklin Templeton Mutual Fund on Friday said its six shut schemes have received Rs 15,776 crore from maturities, pre-payments and coupon payments since closing down in April, 2020. The fund house shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market.
What is Franklin Templeton funds?
Franklin Templeton offers a number of different types of income-producing funds, each with its own characteristics and level of risk, including government bonds, corporate bonds, municipal bonds, securitized assets, bank loans, and currencies.
How good is Franklin Templeton Mutual Fund?
Franklin Templeton began its India operations in 1996 as Templeton Asset Management India Pvt. Ltd….Top 10 Franklin Templeton Mutual Funds.
| Fund Name | Franklin India Smaller Companies Direct Fund |
|---|---|
| Risk | Very High |
| 1Y Returns | 64.7\% |
| Rating | 2 |
| Fund Size(in Cr) | ₹7,229 |
How is Franklin Liquid Fund?
The NAV of Franklin India Liquid Fund for Dec 08, 2021 is 3163.2795. Franklin India Liquid Fund has an ETMONEY Rank of # 14 of 24 and a consistency rating of 4.
Why Franklin Templeton Mutual Fund closed down 6 funds in India?
In an unprecedented move, Franklin Templeton Mutual Fund has closed down six of its debt schemes in India citing severe redemption pressure and illiquidity in the bond markets amid the ongoing coronavirus crisis.
Is Franklin Templeton’s debt crisis good for STPs?
Liquid and ultra short-term bond funds are still good for STPs, but make sure you invest in one that holds only highly rated securities. The Franklin Templeton debt fund crisis does not impact bond schemes of other houses.
What are the different funds offered by Franklin India?
These schemes are 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 and Franklin India Income Opportunities Fund.
How long has Franklin Templeton been in India?
“Franklin Templeton has a long history of over 25 years in India, with 33 per cent of our global workforce based there. Our commitment to the market and our investors in India remains steadfast,” said Jenny Johnson, President and CEO of Franklin Templeton in a press statement that the fund issued on April 23.