Money News

Franklin Templeton to close six India funds hit by coronavirus

NEW DELHI (Reuters) - Franklin Templeton Mutual Fund on Thursday announced it would wind up six yield-oriented, managed credit funds in India, effective April 23, citing severe market dislocation and illiquidity caused by the coronavirus.

“The decision has been taken in order to protect value for investors via a managed sale of the portfolio,” the Fund said in a statement.

The decision was limited to funds which have “material direct exposure to the higher yielding, lower-rated credit securities in India that have been most impacted by the ongoing liquidity crisis in the market,” the statement said.

The funds included Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund, it said.

Reporting by Manoj Kumar; Editing by Paul Simao