A lot has been written on this issue, but a deeper understanding of the crisis and decisions leading up to the event needs to be understood. Following, Franklin Templeton MF had shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. Undoubtedly, the schemes — … [Read more…]
The suspension of 6 debt fund schemes by Franklin Templeton AMC earlier this year left a lot of investors in shock. Particularly surprising inclusions in the list of suspended schemes were Franklin’s Ultra-Short Term Bond Fund and Low Duration Fund. Even before the suspension of schemes happened, many investors were starting to get wary of … [Read more…]
There is a class of issuers in Indian debt markets that are treated as being very safe in terms of credit risk – namely the quasi-sovereign companies. Generally, these include the so-called Public Sector Undertakings (PSUs) and their subsidiaries. There is in fact a whole category of debt mutual funds. They are ‘Banking and PSU … [Read more…]
Indian debt mutual funds had a great run-up to 2018. Their returns were consistent, stable and fairly impressive. As the dictum goes – if something is too good to be true, it probably isn’t! While in theory investors claimed to have understood the existence of credit risk in most debt mutual funds, they assumed these … [Read more…]