The Franklin Wind-up Saga

In a recent post, I mentioned that Franklin has started the e-voting process. Investors in the AMC’s winding-up funds have started receiving emails about e-voting details and schedule. The email mentioned that the voting was supposed to happen between June 9 and 12. I was hoping that Franklin will be able to start paying some of the investors either in June or July soon after the e-voting. But it does not seem like that will happen. In a recent news, it is known that a petition was filed in Gujarat High Court (HC) against Franklin. The HC then stayed the … Continue reading “The Franklin Wind-up Saga”

Update On Franklin Funds That Are Winding Up

It does not seem like the problems with Franklin are going to end anytime soon. They are in news everyday for some reason or the other. The first issue I can see is that the investors will not receive any money in May. The reason? Franklin has not yet started the voting process. And until that happens I don’t think they can return anything to the investors. If you recall, I was hoping Franklin will return something in May. However, all hope is not lost. Franklin has started the voting process. Hopefully we will get something in June. Please make … Continue reading “Update On Franklin Funds That Are Winding Up”

How Much Will I Get From Franklin Ultra Short Term

You have all read about the Franklin debacle regarding the closure of 6 Franklin India Debt Funds. Many have invested in those funds. Especially the Franklin India Ultra Short Term fund, lured by the excellent returns. I am also one of the investors in the ultra short term fund. And I have a significant portion of my debt portfolio in it. The fund came with a promise of “optimum balance between regular income and high liquidity“. But now, it can neither generate regular income, nor does it have any liquidity at all. Talk about the irony 🙂 Most, if not … Continue reading “How Much Will I Get From Franklin Ultra Short Term”

Franklin Wind-up Situation

Franklin Templeton is winding up 6 yield oriented debt funds because of the liquidity situation that came about due to COVID-19. If you are invested in the following funds, you might have received an email from Franklin. Franklin India Ultra Short Bond Fund (FIUBF) Franklin India Short Term Income Fund (FISTIP) Franklin India Credit Risk Fund (FICRF) Franklin India Low Duration Fund (FILDF) Franklin India Dynamic Accrual Fund (FIDA) Franklin India Income Opportunities Fund (FIIOF) Why is this happening? Due the lockdown situation in India due to COVID-19, the fund has been facing a liquidity challenge due to redemptions. Unfortunately, … Continue reading “Franklin Wind-up Situation”

Franklin India Ultra Short Bond Fund is Down!

Normally I do not write any mutual fund specific posts because I do not recommend specific funds. But in this case I will make an exception because many people I know have invested in Franklin India Ultra Short Bond Fund and are shocked to see it go down by 4.36% in one day! Yes even ultra short term debt funds go down. Most people forget or ignore the credit risk involved in debt funds. If you want absolute safety of investment go for liquid funds or overnight funds. Anyway, back to the point, I don’t have all the information at … Continue reading “Franklin India Ultra Short Bond Fund is Down!”