Rs 25,000 Cr Stuck in Mutual Fund Shut by Franklin Templeton

The total assets under management (AUM) of the six shut funds of Franklin Templeton Mutual Fund stands at over Rs 25,000 crore. The asset under management of the six funds stood at Rs 30,853 crore in March-end but came down to Rs 25,856 crore, as on April 22, amid liquidity concerns.

The funds which will be shut are Franklin India Low Duration Fund, Ultra Short Bond Fund, Short Term Income Plan, Credit Risk Fund, Dynamic Accrual Fund, Income Opportunities Fund, the company said in a statement.

The funds house said that individual emails are being dispatched to the unitholders regarding the closure of the schemes. The trustee or the people authorised by it will continue to realise or dispose-off the assets of the schemes in the best interest of the unit holders.

The sale proceeds after discharge of all liabilities and expenses will be paid to the unit holders in proportion to their respective interests in the assets of schemes. Late on Thursday evening, Franklin Templeton Mutual Fund late announced it was closing these six of its credit funds due to liquidity issues amid the coronavirus crisis.