How the repayment of Rs 9,122 cr from the Franklin mutual fund will be distributed among the investors in the closed plan

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NEW DELHI: Good news for some of the investors in the six programs closed by Franklin Templeton Mutual Fund in April 2020. The fund company will disburse cash held in five of the six programs to investors in accordance with the Supreme Court verdict on the matter.

Investors in the Franklin India Low Duration Fund will recover around 63% of the value of their investment, while investors in the Franklin India Ultra Short Bond Fund will recover almost 50% when the Franklin Templeton Mutual Fund begins distributing cash next week.

But investors in the Franklin India short-term plan can expect just under 9%, while investors in any of the six closed programs will get nothing in the first tranche. The Franklin India Income Opportunities Fund does not yet have positive liquidity, although its borrowing levels have fallen to 5%.

How much can Franklin investors expect to recover

Schema name AUM as of January 31, 2021 (Rs cr)
Available for distribution (Rs cr) % of the holding value that the investor will receive
Franklin India Low Duration 2,595 1,625 62.6
Franklin India Ultra-Short Bond 10,220 5,075 49.7
Dynamic accumulation Franklin India 2,578 1,025 39.8
Franklin India credit risk 3,668 926 25.2
Franklin India Short Term Income 5,609 469 8.4

In a note to investors, Franklin Templeton Chairman Sanjay Sapre explained the process and terms of payment for the first installment. “The payment will be made by switching off the units proportional to the net asset value in effect on the date of processing,” he wrote. Investors should note that payments from February 15 to investors whose accounts are KYC compliant with full details available. “Unitholders whose PAN, KYC, FATCA, UBO, minor via guardian or transmission details and documentation are not available or are not valid, will be made once regulatory and compliance requirements have been met,” adds Note.

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