Table of Contents
- 1 Will I get my money back from Franklin Templeton?
- 2 What is Franklin Templeton Quora?
- 3 What is Franklin Templeton crisis?
- 4 Are closed-end funds a good investment?
- 5 Why debt funds are giving negative returns in August 2020?
- 6 Why are debt funds risky?
- 7 What happened to Franklin Templeton Quora?
- 8 Why Franklin Templeton Mutual Fund closed six funds in India?
- 9 What happened to my Franklin Templeton SIP?
- 10 What does SEBI’s latest order on Franklin Templeton shut schemes mean?
Will I get my money back from Franklin Templeton?
Investors in the Franklin India Low Duration Fund will get back an estimated 63\% of the value of their investment while investors in the Franklin India Ultra Short Bond Fund will get back almost 50\% when Franklin Templeton Mutual Fund starts distributing cash next week.
What is Franklin Templeton Quora?
Answered 6 months ago · Author has 808 answers and 370.8K answer views. Franklin Templeton, as a mutual fund or asset management company, manages many schemes under debt funds, equity funds, hybrid funds and specialised funds. 6 out of their 13 funds are closed now, but the rest of the debt funds are doing well.
What is the problem with Franklin Templeton?
All the schemes were holding highly illiquid and large portions of low-rated securities. As a result, the fund house had challenges meeting the redemption requests amid deteriorating credit environment due to sluggishness in the economy. The schemes also had to resort to borrowing to meet the redemption pressure.
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.
Are closed-end funds a good investment?
Closed-end funds are one of two major kinds of mutual funds, alongside open-end funds. Since closed-end funds are less popular, they have to try harder to win your affection. They can make a good investment — potentially even better than open-end funds — if you follow one simple rule: Always buy them at a discount.
Why do funds closed to new investors?
The biggest reason why a mutual fund company will decide to close its fund’s doors is that the fund’s strategy is being threatened by the fund’s size. The decision to close a fund’s doors to new investors could be to protect existing shareholders from stagnant or declining fund performance.
Why debt funds are giving negative returns in August 2020?
Exception: When interest rates are rising, long-term debt funds can give negative returns. This is because the value of long-term bonds with low interest rates goes down in the secondary bond market when rates rise. The funds holding bonds of long maturities suffered losses, with the average fund losing 7.26 per cent.
Why are debt funds risky?
Debt funds come with a fixed interest-earning potential with a predetermined maturity period. These funds are inherently low-risk investment avenues compared to high-risk equity funds, which are subject to market volatility. Debt funds are also prone to credit risk and interest rate risk, unlike bank FDs.
Is Franklin Templeton A good mutual fund?
The company has 40+ mutual funds schemes, including the best Franklin Templeton debt mutual funds….List of Franklin Templeton Mutual Funds in India.
| Fund Name | Franklin India Smaller Companies Direct Fund |
|---|---|
| Category | Equity |
| Risk | Very High |
| 1Y Returns | 54.8\% |
| Rating | 2 |
What happened to Franklin Templeton Quora?
Why is it shutting down? – Quora. Greetings, As per the AMC telling us “ it is “In light of the severe market dislocation and illiquidity caused by the COVID-19 pandemic, this decision has been taken in order to protect value for investors via a managed sale of the portfolio.”
Why Franklin Templeton Mutual Fund closed six funds in India?
Franklin Templeton Mutual Fund has said it would close six yield-oriented, managed credit funds with total assets under management of Rs 25,856 crore in India from April 23 over severe market dislocation and illiquidity caused by the coronavirus pandemic.
What is frankfranklin Templeton doing with its investors?
Franklin Templeton will now sell the underlying securities of all these funds over time and pay off their investors in a staggered manner.
What happened to my Franklin Templeton SIP?
The Systematic Investment Plans (SIPs) will stop automatically since Franklin Templeton has stopped subscriptions and redemptions. If someone had enrolled for Systematic Transfer Plans (STPs), their money is stuck.
What does SEBI’s latest order on Franklin Templeton shut schemes mean?
Franklin Templeton India has informed unit holders of the debt schemes shut last year that SEBI’s latest order barring the fund house from launching any new debt scheme for two years, along with imposition of penalty on the company, will not bear any effect on the ongoing monetisation process of the shut schemes.