Franklin Templeton India Predicament: A Case Study

Investing in mutual funds is always encouraged and especially in debt funds but after Franklin Templeton imbroglio most investors including the unit holders are bit precarious related to the investment in mutual funds. Though the investors are aware about the fact that the ?Mutual Funds are subject to market risks? and also the ill effects of pandemic Covid -19 which has also adversely affected the investments in Franklin Templeton six wound up schemes. This paper attempts to provide deep insight into the Franklin Templeton plight. The paper takes into account the reasons for the failure of the six debt schemes, various extinguishments made by the Asset Management Company to the unit holders of the six schemes being wound up and also the maturity dates by which the schemes are declared in their frequent declarations on their official website. Besides the predicament of Franklin Templeton?s debt schemes, one cannot ignore the very fact that though debt funds are also subject to risks being the core element of mutual funds but still they prove to be safer than the other schemes of mutual fund i.e. equity schemes, hybrid schemes, etc. In addition, the paper also designates the cushion effect of having a portion of investment in debt schemes of mutual fund. The paper brings to light the reason of failure of Franklin Templeton, how the asset management company is making a successful attempt to return the blocked amount of the unit holders and finally the reasons why debt funds are still safe despite the failure of debt schemes of Franklin Templeton.