In April 2020, Franklin Templeton winded up six of their schemes and redemptions were prohibited. It was chaos all over. Not only investor in these schemes were panicking, it sent shock waves across the industry.
Anyways. Fast forward 18 months. Almost 90% of stuck money is repaid to investors. The critics have taken a back sit. They have fallen flat on their projections that investors may lose half of their money.
Was winding up of the schemes a good thing to happen for investors? No, not at all. It was an unfortunate event but it was exaggerated by market pandits, specially those who didn't have any exposure to these schemes.
The developments during the last eighteen months (repayments) shows the resilience of the mutual fund industry as a whole. It instills confidence into the system. Such incidents or others will keep on happening in the future. It doesn't mean one should stay away from mutual funds. Just like we don't stay indoors fearing accidents on the roads, we can't stop investing in mutual funds just because a few things will not fall in place.
Be positive. Invest through mutual funds.