InvestorQ : I had invested in Franklin Ultra short duration superinstitutional plan. Its NAV has suddenly fell. should I exit?
Vishvanayak made post

I had invested in Franklin Ultra short duration superinstitutional plan. Its NAV has suddenly fell. should I exit?

Answer
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9 months ago


Franklin Templeton has marked down its debt schemes’ exposure in troubled telecom operator Vodafone Idea. It's Ultra-short duration super institutional plan is one of those schemes that are affected by the event and therefore it’s NAV has declined.

In general, Ultra-Short Duration funds are meant to provide quick liquidity which typically flows from their cash position and holdings in high-quality debt instruments such as AAA-rated securities. Franklin India Ultra Short Bond Fund has very low holdings in high-quality bonds and other liquid assets (4.1% in AAA-rated papers). Therefore, it is recommended to EXIT from this scheme.