Franklin Templeton Mutual Fund had closed six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. The schemes – 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 – together had an estimated Rs 25,000 crore as assets under management (AUM).
“The six schemes have received Rs 438 crore from maturities, pre-payments and coupon payments during the period October 16-29, 2020,” Franklin Templeton MF said.
Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 42%, 25%, 20%, and 5% of their respective assets under management (AUM) in cash.