Business Standard

Not the time for credit risk, investors should stay away from debt funds

Given that the Covid crisis could lead to more defaults by companies, investors are better off staying away from such funds

equity and debt fund
Premium

On Friday, the Association of Mutual Funds in India (Amfi) and leading industry players rushed to assure investors that their monies were safe

Joydeep GhoshSanjay Kumar SinghPuneet Wadhwa
Vivike Agrawal’s faith in debt funds has been shaken considerably since Franklin Templeton Mutual Fund (FT) suddenly declared to investors, on Thursday, that it is shutting down six schemes with assets of about Rs 26,000 crore. The 46-year-old self-employed had invested Rs 50 lakh in Franklin India Short Term Income Fund in 2015. Last month, he redeemed Rs 25 lakh and reinvested in Franklin India Liquid Fund–Super Institutional Plan. 

“The proceeds were to be utilised for my son’s higher education. Since I can’t do anything about the money frozen in the schemes, I have put redemption requests on all other

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Apr 26 2020 | 7:58 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com