Tag: Franklin templeton

Shoe Leather Cost, Covid & Yes Bank!

People normally want to park most of their liquidity in an interest bearing savings account with a bank (or park in liquid funds) and minimise the actual cash they keep with themselves. This is because while the nominal value of cash remains constant, the real value of the same reduces with time due to inflation. However, some amount of cash one needs, to carry on day to day activities – to pay to vegetable vendor, for grocery store next door […]

Credit Focussed MF’ AUM falls off the cliff

Credit focussed mutual funds’ AUM has been sloping downwards since the beginning of last fiscal – as can be seen below, the same has fallen off the cliff post the recent Franklin Templeton Mutual Fund crisis. Almost 40% of the credit category’s AUM has been redeemed in the initial five weeks of the current fiscal and the total category AUM across the twenty funds has fallen to meagre INR 33,200 Crs as on 6th May as per AMFI Data. Three […]

“Ripple effect” of Franklin upheaval

As it being covered so extensively in all media, the shutdown of six debt schemes by Franklin Templeton can have far reaching implications. The article examines the immediate and mid-term ripple effect of the Franklin upheaval. A) Impact on portfolio companies of credit focused funds : While a lot has been written about the pain fund investors will have post this stress , an aspect which has gone un-noticed is the impact on portfolio companies. Mutual funds normally try to […]

Credit focused Mutual Funds – Analysis of structural issues

“Temple” is how the fund house that announced lock-down on six debt funds was referred to in common market lingo. If Franklin was “Temple”, its famed CIO was nothing short of a “Demi-god” of Indian Credit Bond Market. However, the recent incident proves that there exist certain structural issues and till these are resolved no power can ensure stability of Credit focused mutual funds in India. In this article we have tried to highlight these issues and have also offered […]

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