InvestorQ : With Franklin Templeton shutting down 6 of its funds, what happens to the unit holders of these funds?
Mahima Roy made post

With Franklin Templeton shutting down 6 of its funds, what happens to the unit holders of these funds?

Answer
user profile image
Aditi Sharma answered.
6 months ago


Templeton has just announced that it has wound up six of its schemes with over Rs.30,000 crore of assets under management invested in it. Franklin Templeton is India’s eighth-largest mutual fund with over Rs.1 trillion of assets under management (AUM). What does that mean for the investors in the scheme? It means that you cannot exit or receive dividends from the schemes, nor can you invest into them. Your money will be returned as the papers the mutual fund holds mature over the next few years and as the fund house finds buyers for the bonds it holds. However, all redemption requests placed with the fund till 23 April will be honoured. The fund will not be charging any management fees effective immediately on these funds. But funds are locked and that is causing a lot of panic. Templeton has cited lack of liquidity and redemption pressures as reasons for this decision.