NEW DELHI: You can now feel some relief if you are a unitholder in one of the debt funds which Franklin Templeton winded up last year, with the company set to begin making the required payments to its investors this week.
The Supreme Court has asked SBI Mutual Fund to distribute the cash in five of the six schemes that were wound up and the firm will distribute the amount and cash available up to January 15, 2021 in the funds to unitholders.
All the unitholders whose accounts are KYC-compliant and have the required details will begin receiving the payments during the week beginning February 15, 2021. However, not all Franklin Templeton unitholders will get all their dues. If you had invested in the Franklin Ultra Short Bond Fund, you will receive only around half of your money.
All the unitholders of Franklin India Low Duration Fund will receive nearly two-thirds of their money, as the scheme held around 65 per cent of its assets in cash. Investors of Franklin India Credit Risk Fund will receive around one-fourth of their value as the scheme has 26 per cent in cash. Franklin India Dynamic Accrual Fund had 41 per cent of assets in cash, while Franklin India Short Term Income Fund had nine per cent of assets in cash.
Unitholders of Franklin India Income Opportunities Fund will be disappointed since they will have to wait little longer as the scheme is yet to repay its borrowings. The arrangement also suggests that the investor will receive funds proportional to the number of units held by them and that the payment will be calculated on the net asset value (NAV) that is recorded on the day before the distribution of cash starts.