Franklin Templeton repays investors of two debt funds

Franklin Templeton India mutual fund distributes recovered money to unit holders in wound-up schemes

Franklin Templeton India mutual fund will repay an amount of Rs 178.06 crore to investors of two of its wound-up debt schemes, starting June 14 across two of its schemes.

The fund house announced that it will pay off Rs 39.27 crore to investors of Franklin India Short Term Income Plan (FISTIP). It will also pay 138.79 crore to investors of Franklin India Credit Risk Fund (FICRF). The fund announced that the payment will be made electronically to all eligible unitholders by SBI MF.

In April 2020, Franklin Templeton India Mutual Fund shocked investors when it abruptly wound up six debt funds. On April 23, 2020, the fund house announced that it was winding up the six debt schemes – Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Low Duration Fund (FILDF), Franklin India Short Term Income Plan (FISTIP), Franklin India Income Opportunities Fund (FIIOF), Franklin India Credit Risk Fund (FICRF) and Franklin India Dynamic Accrual Fund (FIDAF).

While the fund house has paid off all its unit holders of almost all the schemes, it continues to pay off as it recovers money that is stuck in securities earlier marked down to zero.