Lockdown: Fund houses reassure investors amid fears of redemption requests

Aditya Birla and HDFC, also rushed to hold conference calls with their investors in an effort to reassure them about their portfolios

Fund houses in India were trying to reassure investors on Friday, amid fears of a flood of redemption requests in the wake of the unprecedented closure of six debt funds by global giant Franklin Templeton.

Franklin Templeton Mutual Fund, one of the country's most prominent mutual fund houses in fixed income, said on Thursday that it would wind up six credit funds in India with large exposures to higher-yielding, lower-rated credit securities due to a lack of liquidity amid the coronavirus pandemic.

The closures sparked worries of panic withdrawals from other Franklin Templeton funds as well as credit funds of