Sunday, March 16, 2025 | 11:31 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

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

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in