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In April 2020, Franklin Templeton Mutual Fund announced the winding of six debt schemes-- Franklin India Low Duration, Franklin India Dynamic Accrual, Franklin India Credit Risk, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
You are ready to use your savings. You can either request a check or transfer to another bank via Automated Clearing House (ACH). All requests must be made by the account owner. Franklin Templeton does not take distribution instructions from a beneficiary.
How does the account owner withdraw money for education expenses? To make an online withdrawal to the account owner: Sign in to the Franklin Templeton 529 College Savings Plan account. The proceeds may then be sent by check to the address on file or electronically to a bank account on file.
The fund house had announced closure of its six debt mutual fund schemes on April 23, 2020, citing redemption pressures and lack of liquidity in the bond market.
All the schemes were holding highly illiquid and large portions of low-rated securities. As a result, the fund house had challenges meeting the redemption requests amid deteriorating credit environment due to sluggishness in the economy. The schemes also had to resort to borrowing to meet the redemption pressure.
The decision by the Securities and Exchange Board of India (SEBI) is a major setback for Franklin Templeton, one of India's most prominent fund houses in fixed income, with assets under management of over 825 billion rupees ($11.33 billion) as of the end of March.
In an unprecedented move, Franklin Templeton Mutual Fund has closed down six of its debt schemes in India citing severe redemption pressure and illiquidity in the bond markets amid the ongoing coronavirus crisis.
In April 2020, Franklin Templeton India Mutual Fund shocked investors when it abruptly wound up six debt funds. COVID-19 had been declared a pandemic in March. As the viral disease spread across the world, equity markets had fallen by 37 percent in 40 days and debt markets froze.
In April 2020, Franklin Templeton Mutual Fund announced the winding of six debt schemes-- Franklin India Low Duration, Franklin India Dynamic Accrual, Franklin India Credit Risk, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.