The crisis in Franklin Templeton Mutual Fund has put the Rs 22-trillion mutual fund (MF) industry in damage-control mode, with large fund houses trying to allay investor concerns on the risk profile of their schemes and discouraging them from taking hasty decisions to redeem their investments.
Industry executives fear this can exacerbate redemption pressure, and lead to forced sales of relatively good-quality papers or trigger borrowing.
In a surprise move, Franklin, among India’s leading fund houses, on Thursday announced closing six of its schemes with net assets of Rs 25,000 crore.
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