News That Matters

Tag: schemes

Sebi gives exit route to mutual fund investors in wound up schemes

Sebi gives exit route to mutual fund investors in wound up schemes

Finance
The Securities and Exchange Board of India has said that the units of schemes in the process of winding up will have to be listed on recognised stock exchanges. This rule will have to be followed by all open and close-ended schemes. This move by the market watchdog comes after Franklin Templeton Mutual Fund decided to wind up 6 of its debt mutual fund schemes. In a circular issued on Wednesday, Sebi said: "In terms of Regulation 31B(1) of the MF Regulations, the units of Mutual Fund schemes can be listed in the recognized stock exchange. Accordingly, the units of Mutual Fund schemes which are in the process of winding-up in terms of Regulation 39(2)(a) of MF Regulations, shall be listed on recognized stock exchange, subject to compliance with listing formalities as stipulated by the stoc...
Winding up of debt fund schemes by Franklin Templeton

Winding up of debt fund schemes by Franklin Templeton

Finance
How big is the Franklin Templeton Mutual fund and why is it in the news now?Franklin Templeton Mutual Fund is the 9th largest mutual fund house in India and manages assets worth ₹1.16 lakh crore. Late Thursday, it announced winding up six of its debt mutual fund schemes with immediate effect – from Friday. The current lockdown on account of the pandemic has led to risk aversion among investors and there are no takers for lower rated and unrated paper. So, when an investor redeems, the fund house ends up selling good quality liquid paper increasing concentration risk in the scheme, which is not in the interest of remaining unitholders. Looking at this scenario, FT has decided to wind up these six schemes. Which are the six funds that FT has wound up? The six funds are Franklin Low Duration,
Rs 4,500 crore mutual fund money at stake in Voda Idea; Templeton markdown hits 6 schemes

Rs 4,500 crore mutual fund money at stake in Voda Idea; Templeton markdown hits 6 schemes

Finance
Mutual funds having exposure to Vodafone Idea’s corporate papers and shares are staring at possible losses as an adverse judgment from the Supreme Court threatens to down the curtains on the business. The telco’s survival will now depend on its ability to garner funds to pay the statutory dues and repay what it had borrowed from the market. The government has estimated Vodafone Idea’s dues at over Rs 53,000 crore, including over Rs 28,000 crore in licence fee, interest and penalties and the rest on spectrum usage charges. Besides, the company’s total debt stood at Rs 1.15 lakh crore at the end of FY2019, shows available data. Mutual fund investors have already taken the first hit from this, after Franklin Templeton India marked down its Vodafone Idea debt exposure to zero as a pre-emptive
Most investors make less returns than their schemes: Axis Mutual Fund report

Most investors make less returns than their schemes: Axis Mutual Fund report

Finance
Most mutual fund investors make lower returns than their mutual fund schemes due to their bad habit of frequently getting in and out of schemes, shows an analysis of Axis Mutual Fund. ‘Analysis of Indian investor behaviour and its impact on performance’ by Axis Mutual Fund looked at the performances across different category of funds, including equity, hybrid and debt funds in the short and the long term. The findings of the report conclude “investor flows are not stable but instead tend to follow market performance and as a result their realised returns are much worse than what they would have achieved by using either simple buy and hold or systematic investment strategies.” The report further adds that the effect is persistent across different time periods and shows that there has been l
Government introduces Bill to check ponzi schemes in Lok Sabha

Government introduces Bill to check ponzi schemes in Lok Sabha

Finance
New Delhi: In a bid to save gullible investors from ponzi schemes, the government Friday introduced the Banning of Unregulated Deposit Schemes Bill, 2019 in the Lok Sabha that seeks to put in place a mechanism by which such depositors can be compensated. The Banning of Unregulated Deposit Schemes Bill, 2019 will replace the Ordinance on the same. The bill seeks to help tackle the menace of illicit deposit taking activities in the country, which at present are exploiting regulatory gaps and lack of strict administrative measures to dupe poor and gullible people of their hard earned money, according to the government. The bill was introduced by Finance Minister Nirmala Sitharaman in the Lower House amid noisy protests by Congress members over the ongoing political crisis in Karnataka. The...