Investors will get ₹78 crore in Franklin Templeton’s debt schemes

SBI Mutual Fund was appointed to liquidate the assets of the discontinued schemes and distribute the proceeds to the unitholders.

Brokerage (distributor’s commission on regular schemes) earned under these six schemes from April 24, 2020 to March 17, 2021, when SBI Mutual Fund took over as liquidator, 78 crores. This amount is added to the NAV (Net Asset Value) of the debt schemes.

In April 2020, franklin templeton The mutual fund announced the closure of six debt schemes- Franklin India Low Duration, Franklin India Dynamic Accrual, Franklin India Credit Risk, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.

Nishant Batra, chief target planner, Money, Mind and Milestones said, “Since proper practices were not followed for discontinuing the schemes, it is pertinent that the commission will now be distributed to the unitholders and not to the mutual fund distributors. “

As on March 24, 2022, the NAVs of five debt schemes – Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Credit Risk Fund – were above around 3%. -21%.

In case of Franklin India Income Opportunities Fund, all the units of the scheme have already been liquidated and the proceeds have been returned to the investors and the scheme is currently terminated.

“In this case, the liquidator will decide how the additional amount transferred in the scheme is now distributed. Investors are likely to receive income proportionately on the basis of units held by them as on the date of expiry of the scheme,” said one of the sources on the condition of anonymity.