More respite to unit holders of shut FT schemes

12 Jul 2021

Investors in the schemes shut by Franklin Templeton will receive the 5th tranche this week

✅ Franklin Templeton MF shut six debt mutual fund schemes on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market

✅ The 6 schemes were 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

✅ The combined AUM of the 6 schemes was estimated at Rs 25,000 crore

✅ Rs 3,303 crore will be distributed proportionate to the holdings of unit holders this week

✅ In February 2021, the 1st disbursement of Rs 9,122 crore was made, Rs 2,962 crore was paid in April, Rs 2,489 crore in May and Rs 3,205 crore was paid off in June

✅ SBIMF, the liquidator of the wound up scheme will manage the distribution which works to 84% of the assets at the time of the closure of the schemes

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