Franklin Templeton fund of funds sees sharp value drop after scheme wind-up

Six fund-of-funds schemes take 6-25% NAV hit to their exposure to schemes wound up by the AMC

Franklin Templeton investors may have to brace for another blow, with six of the fund house's debt schemes having seen erosions of between six per cent and 25 per cent in their net asset values (NAVs). The six are so-called fund of fund (FoF) schemes, which invest in a basket of other mutual funds. The FoFs had varying degrees of exposure to the Franklin schemes that the fund house wound up, citing heavy redemption pressure amid illiquid market conditions.

Franklin Life Stage FoF 50s Plus has seen the deepest drop in NAV at 25.2 per cent, followed by Franklin Multi-Asset