Unitholders of Franklin Templeton Mutual Fundâ€™s six frozen fixed income schemes have an important decision to make next weekend. They will vote on whether to give their consent for winding up the schemes, which had assets under management worth Rs 25,861 crore as of November.
The Supreme Court, in an order at the start of December, had directed Franklin Templeton to seek unitholdersâ€™ approval for winding up six of its fixed income schemes â€”a process the fund house had started in April. Subsequently, the asset manager informed unitholders that a vote would take place electronically between Dec. 26 and Dec. 28.
If unitholders vote â€œnoâ€, the schemes will be re-opened and they will be free to sell their units.
BloombergQuint, in its weekly special The Mutual Fund Show, spoke with Vijai Mantri, co-founder and chief investment strategist at JRL Money, and Tarun Birani, founder and director at TBNG Capital, about the likely repercussions of each of the unitholdersâ€™ choices and what the best option is from the perspective of preservation of capital.
Mantri and Birani also discussed some of the new fund offers that have been rolled out by asset management companies and the likely impact of SBI Mutual Fundâ€™s Chief Investment Officer Navneet Munotâ€™s move to HDFC Mutual Fund.