The Franklin Templeton crisis showed investors just how vulnerable debt mutual funds are to market fluctuations. The crisis also spawned curbs by the Securities and Exchange Board of India on mandatory cash holding in debt funds and proposals to create a backstop to buy illiquid debt in the market in times of crisis.
Investors in the Franklin India Low Duration Fund will get back an estimated 63% of the value of their investment while investors in the Franklin India Ultra Short Bond Fund will get back almost 50% when Franklin Templeton Mutual Fund starts distributing cash next week.
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What Happened Last Week.
| Market Indicators? ? 4 | | As of |
|---|
| Inflation (Core CPI) | 3.8% | 05/31/2021 |
| Unemployment | 5.9% | 06/30/2021 |
| GDP | 6.4% | 03/31/2021 |
Franklin Templeton MF had shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. Franklin Templeton Mutual Fund on Thursday said its six shut schemes have received Rs 11,907 crore from maturities, pre-payments and coupon payments since closing down in April.
Overall, Franklin Income A ( FKINX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively similar performance, average downside risk, and lower fees, Franklin Income A ( FKINX ) looks like a somewhat weak choice for investors right now.
But in some funds such as Franklin India Corporate Debt, a good part of the portfolio remained undeployed, which could hurt returns, even though the AUM was stable after the initial fall. We are therefore changing our Hold ratings to Sell in these remaining debt funds.
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Franklin Templeton has a long-standing commitment to financial professionals founded in the value of advice. With this commitment, we have a team of seasoned professionals and resources dedicated to providing exceptional service to independent investment advisers.
(“FTFS”) is registered with the Securities and Exchange Commission as a broker-dealer. FTFS is a wholly owned subsidiary of Franklin Resources, Inc., a holding company that, together with its subsidiaries, operates as Franklin Templeton®.
Templeton entered the mutual fund industry in 1954, when he established the Templeton Growth Fund. With dividends reinvested, each $10,000 invested in the Templeton Growth Fund Class A at its inception would have grown to $2 million by 1992, when he sold the family of Templeton Funds to the Franklin Group.
While many companies offer mutual funds, very few companies can rival Franklin Templeton's more than 70 years of experience. During that time, we've managed through all kinds of markets—up, down, and everything in between.
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A Selection Of Franklin Templeton Mutual Funds
| Fund Name | Ticker Symbol | Asset Class |
|---|
| Franklin Focused Growth Fund | FFQZX | Equity |
| Franklin Georgia Tax-Free Income Fund | FGFZX | Fixed Income |
| Franklin Global Allocation Fund | FFAAX | Multi-Asset |
| Franklin Global Growth Fund | - | |
There is no guarantee you will not lose money in mutual funds. Mutual funds are managed by fund managers who invest in a wide variety of stocks, bonds and commodities. So, it's not that all of your mutual funds would fail. However, the economy of the country can go up and down.
What makes Franklin Templeton unique? We've built a uniquely collaborative culture that allows us to ask fresh questions in a safe environment and harness our best thinking. By working together we link our expertise, gain deeper insights and make better informed decisions.
Top 10 Franklin Templeton Mutual Funds
| Fund Name | Category | 1Y Returns |
|---|
| Franklin India Taxshield | Equity | 60.1% |
| Franklin India Focused Equity Fund | Equity | 65.6% |
| Franklin India Index Fund - NSE Nifty Plan | Other | 42.6% |
| Franklin India Bluechip | Equity | 58.1% |
There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.
- Growth investments.
- Shares.
- Property.
- Defensive investments.
- Cash.
- Fixed interest.
