More trouble has come up for investors in Franklin Templeton’s fund of funds (FoF) schemes, which invest in other mutual fund schemes.
As many as six of the fund house’s FoF schemes have lost up to 25 per cent in their net asset values (NAVs). These FoFs have exposure to the Franklin Templeton’s six credit schemes which are being wound up due heavy redemption pressure.
Franklin Life Stage FoF 50s Plus has witnessed a 25.2 per cent decline in NAV. Franklin Multi-Asset Solution Fund NAV declined by 22 per cent. “It is really unfortunate that investors are suffering huge losses at a time when the country has been hit by the coronavirus pandemic,” said an investor.
The six schemes that the fund house had shut down on Thursday are Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
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