Franklin Templeton Mutual Fund received Rs 1498 crore for closed schemes in two weeks

 

Franklin Templeton Mutual Fund said on Thursday that it has received Rs 1498 crore from its 6 closed schemes in the last two weeks. This amount is received through maturity, pre-payments and coupon payments. According to Franklin Templeton, a total of Rs 6486 crore has been received from the schemes which have been closed since April 24, 2020. Franklin Templeton closed these 6 schemes on April 23, 2020, due to legal uncertainty and lack of liquidity in the bond market.

 

Asset Under Management (AUM) of all 6 schemes discontinued by Franklin Templeton is estimated to be around 25 thousand crore rupees. The schemes which were closed by the mutual fund house are.

1. Franklin India Low Duration Fund

2. Franklin India Dynamic Acquire Fund

3. Franklin India Credit Risk Fund

4. Franklin India Short Term Income Plan

5. Franklin India Ultra Short Bond Fund

6. Franklin India Income Opportunity Fund

 

Out of these 6 schemes, Franklin India Low Duration Fund and Franklin India Credit Risk Fund have a cash surplus of 5% and 1% of their AUM respectively. But fund houses cannot make cash payments to the unitholders of both schemes. Because the Supreme Court has sent petitions of all investors to the bench of Karnataka High Court against Franklin's move to cancel the schemes filed in various courts. All matters will be decided within three months. Unitholders can be paid cash in schemes only after approval through e-voting. The e-voting for 6 schemes and the meeting of the unitholders cannot be held until the court gives its verdict.