Vodafone Idea Impact: What happened to Franklin Templeton Debt Mutual Funds

if you are an investor in the dead

franklin

templeton

scheme you would have seen a huge drop in the values ​​of your

funds

in this video we tell you

what

happened

and why it

happened

there are also some important lessons to be drawn from this crisis hello this it's Neil burrata from the mint money team and this video is about

what

happened to the water phone

idea

and

mutual

funds

that kept his paper dead, oddly this isn't the first time this has happened with Franklin Templeton in 2016 Franklin it was exposed to bonds issued by JSP L which defaulted at the time, the main house took that dead paper on its own books, meaning it protected its investors from those losses, however that is not happening this time with Franklin Templeton, an MC, along with three other

mutual

funds UTI Ulta Bella Sun Life and Nippon India full papers on the water phone

idea

what happened to any idea is that the Court e Supreme dismissed a request for review related to a gr and thus has brought a liability of around Rs 50,000 crore on more than one idea to be paid before 23rd January.

This proposition seems almost impossible for that company and as a result, Franklin Templeton AMC decided to proactively cancel the bonds of the water phone idea that had exposure in the dormant schemes of the Franklin Templeton mutual fund to avoid an idea being in the offing. range from 4 to 7 percent this is the amount by which the various

franklin

templeton

dormant schemes that had exposure decreased buying as a result its water holdings for idea

debt

of around 30 to 60% of value, in other words, there could be more on the flip side if Vodafone idea is successful in its curative petition or if the Indian government grants a reprieve to the idea of ​​the water phone by making payments the na vi of those funds could also recoup some of the other AMCs even have a greater exposure com or e percentage of scheme assets to own idea word, for example in the UK credit risk fund the exposure is 17 point 55 per cent of scheme assets meaning if the exposure fully defaults the scheme will lose seventeen and a half percent of its value now you might be wondering why there is no side bagging on this one the answer is since there has not yet been a formal downgrade by an agency Credit rating agencies like Crystal Kerr India Ratings and so on the Franklin Templeton mutual fund can't choose to pocket sideways, this can only be done when an issuer's papers are downgraded below investment grade and that hasn't formally happened yet now The next question is, and perhaps the most important, whether you will get your money back.

This is possible. It has been reported that the water phone idea is contemplating a curative petition in the Supreme Court, plus the government could extend the time period before an idea to make payments and the company could still survive, hard to say from one One way or another, now what can you as an investor do about it? If you are a Franklin Templeton investor, there is nothing you can do. lakh per day so if you are a speculator and you want to put the funds in hoping for a recovery and a windfall this is also hard if you are an investor in any of the other AMCs you can exit for the other MCS you could score your exposure on any given day and you could end up with a much lower nav than you thought you were getting.

Sujin Financial Advisors watchdog has said investors should stick around, but made an exception for the UTI credit risk fund it has since it can recall a 55% exposure of 17 points to the word of an idea if it's considering a departure, make sure you have calculated the departure tax and charge to be paid and consider this as you make your decision. Is there any lessons you can learn? Common crawl en In this long-term crisis, yes, investors typically only see credit risk in credit risk funds, but as this episode shows, credit risk can also align with other types of funds, such as low duration, short duration, or income opportunities, senior executives have told me that franklin templeton AMC communicated to advisers that certain schemes, such as those affected, have been high credit risk and were fully aware when such schemes were recommended to clients, but this was not discussed in the general public and the common man in the street did not know the only solution for you when you are investing in risky

debt

funds is to turn to a good adviser thanks for watching mint money we will keep you updated on new developments in this story Thanks and bye