Market regulator SEBI has issued audit notice to Franklin Templeton to provide information regarding the dealings of the six wound-up schemes. SEBI has hired the services of chartered accountancy and forensic audit firm Chokshi & Chokshi for the assignment. The investigation report is expected to be submitted within 30 days. You may recall that a few…
The pandemic crisis has wrecked havoc on the equity market. Emerging economies like India have been the worst hit due to the pandemic related disruption which led to foreign investors pulling out money. In March alone FPIs pulled out Rs 61,972.8 crore from the Indian equity market. Amid this negative sentiment and high volatility, mutual…
After moderate recovery in April, markets turned volatile again in May. Recent relief package/s the government announced to fight the numbing impact of COVID-19 failed to cheer the market, while the extension of the lockdown further raised concerns over economic growth. However, it is advantageous to stay invested even during an economic slowdown to reap…
The AMFI data for the last few months shows that large cap funds have been attracting higher inflows as compared to riskier categories such as mid and small cap funds. Large caps are better placed to handle economic shocks such as the one we are facing now as these companies have strong balance sheet and…
The pandemic crisis has caused high volatility and uncertainty in financial markets. This has induced a flight to safety and higher liquidity. Liquid funds are perceived to be the safest in the debt funds category. This category of funds invest in debt and money market instruments such as Certificate of Deposits (CDs), Commercial Papers (CPs),…
The impact of this extended lockdown (3.0) on small and medium enterprises could be overwhelming due to their limited ability to absorb economic and financial shocks. As a result, recovery vide earnings will take time even after restrictions are lifted. Stocks of mid and small caps may therefore face selling pressure. The Finance Minister recently…
The wait for troubles to end in debt schemes seems to be getting longer with each passing day. Various categories of debt funds such as Credit Risk Funds, Medium Duration Fund, and Low Duration Fund, etc. witnessed strong outflows in April on Franklin Templeton Mutual Fund shock leading to significant erosion in assets. In another…
Playing the blame game instead of focusing on solving problems is a common human tendency when faced with a crisis. The world is debating about who to point the finger at for the coronavirus crisis; in India some people are arguing over whom to blame for the (mis)handling of lockdown implementations. Meanwhile, Franklin Templeton MF…
The current market environment is momentum driven, meaning the market movement may not reveal the actual growth scenario. The instability caused by virus outbreak has caused some investors to write-off few specific sectors and shun stocks in that particular sector. However, some of the quality stocks in such sectors, even though inappropriately priced in the…
Many investors park their surplus money in debt schemes in an attempt to earn higher returns than Bank FDs. However the recent incident of Franklin Templeton MF winding down six of its debt schemes has dented investor sentiment and sparked speculation about the safety of their investments. The news came as a shocker to the investors because…
