The Affiliation of Mutual Funds in India on Friday urged buyers to stay calm after international fund supervisor Franklin Templeton shut six of its debt funds in India, citing market dislocation and a scarcity of liquidity amid the coronavirus pandemic.
Franklin Templeton Mutual Fund, certainly one of India’s most outstanding mutual fund homes inside the fastened earnings house, mentioned late on Thursday it will wind up six credit score funds with a big publicity to higher-yielding, lower-rated credit score securities.
AMFI mentioned the debt portfolios of most mutual funds had “superior credit score high quality” and have been “pretty liquid” and referred to as on buyers to “not get side-tracked by an remoted occasion”.
“There isn’t any want for (buyers) to panic and redeem their investments,” AMFI chairman Nilesh Shah mentioned in a press release. “The trade continues to stay strong.”