Last Updated on June 3, 2022 at 11:12 pm
While corporate investors withdrew from several Franklin debt funds forcing the closure of six funds (a first in India), the AMC lost 28,664 Crores of debt fund AUM from 31st Dec 2019 to April 30th 2020. Amusingly, one of their debt funds grew 520% in AUM! A look at the change in their debt AUM.
Franklin India Feeder – Franklin U.S. Opportunities Fund increased 32% over this period from 1148 Crores (Dec 31st 2019) to 1515 Crores (April 30th 2020). Interest in this fund seems to have increased after the fall in the US markets.
Franklin India G-Sec Fund saw a 32% growth from 226 Crores to 298 Crores probably in anticipation of rate cuts. The AUM of Franklin India Banking & PSU Debt Fund moved up 10% – 1021 to 1126 Crores. Franklin India Corp Debt Fund fell from 1404 Crores to 1072 Crores, a 24% drop.
Franklin India Floating Rate Fund registered a 38% drop in AUM from 402 to 250 Crores. This is not one of the six closed funds. It was able to manage due to the credit quality and short-term nature of the portfolio.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
The same reasoning will also apply to Franklin India Savings Fund – part of my Handpicked List of Mutual Funds April 2020. This registered the second-biggest drop in AUM for Frankin. It fell from 4724 Crores to 1895 Crores – a 60% drop.
The fact that it is still open for business either suggests that the quality, short-term non-gilt segment of our bond market has become more liquid or the urgency for cash is not as much as it was during the 2008 financial crisis. See: How the 2020 debt fund crisis is a repeat of 2008: Can this be avoided?
The largest drop was seen for Franklin India Liquid Fund-Super Inst: From 12529 Crores to 3582 Crores, a 71% drop.
Franklin India Overnight Fund AUM increased from a paltry 173 Crores to 1071 Crores, a 520% increase, signifying how cash became king in 2020.
The closed six funds registered huge losses (the reason for the closure). The numbers are in crores and represent the change in AUM from Dec 31st 2019 to April 30th 2020.
Franklin India Dynamic Accrual Fund: 3851 to 2437 (-37%)
Franklin India Ultra Short Bond Fund-Super Inst 16894 to 9591 (-43%)
Franklin India Credit Risk Fund 5899 to 3307 (-44%)
Franklin India Income Opportunities Fund 3100 to 1638 (-47%)
Franklin India Low Duration Fund 4627 to 2342 (-49%)
Franklin India ST Income Plan 10964 to 5316 (-52%)
The combined AUM loss from these is 20,705 Crores. Another 2830 Crores lost from Franklin Savings, 5649 Crores from Franklin Liquid Fund. The overall loss is 28,664 Crores for all debt funds.
Assuming a 1% expense fee, this is a potential income loss of about 250-300 Crores. According to the AMC financials as on Sep 2019, the total income fell from 921 Crores in Sep 2018 to 874 Crores in Sep 2019. The AMC will have to brace itself for a big fall in Sep 2020. Will institutional investors return? Will the AMC survive? Some tough days ahead for them.
We are on Google News
Use this button to add freefincal.com as a preferred personal finance source on Google News.
Explore 1,400+ videos on YouTube!
Subscribe to get posts via email!
Join 32,000+ readers and get free money management solutions delivered to your inbox! (Link takes you to our email sign-up form)Join our WhatsApp Channel
Explore our products
🔥Join our community of 9000+ users! 🔥- Use our Robo-advisory Tool to create a complete financial plan! More than 3,500 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
- Our Flagship Course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
- Join the freefincal investor circle! An exclusive space for investors, advisors, fintech employees and students to access financial planning and insurance tools, mutual fund and stock analysis tools, coding strategies and Excel macros for data extraction. 750+ members are now part of our investor circle.
- Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
- Portfolio Tracker! Track your mutual funds and stock investments with our Google Sheet!
- We also publish monthly screeners for
Our Podcast: Let's Get Rich With Pattu
On Spotify: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! On Audible: Listen to the Let's Get Rich with Pattu Podcast
Listen to the Let's Get Rich With Pattu podcast on YouTube.
Now watch Let's Get Rich With Pattu தமிழில் (in Tamil)!About The Author
Dr M Pattabiraman giving a lecture
- Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras.
- He has over 14 years of experience publishing news analysis, research and financial product development. He has over 28 years of teaching and research experience. He is also a public speaker and keynote presenter.
- He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free, AUM-independent investment advice.
- Connect with him via @pattufreefincal on X LinkedIn YouTube
- Pattabiraman has co-authored three print books.
This book helps you ask the right questions and find the right answers. It also includes nine online calculators to create custom solutions.
(2) Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want. 
Both the boy and girl versions of "Chinchu Gets a Superpower".
Most investor problems stem from a lack of poor decision-making. We made bad decisions and money mistakes when we started earning, and we spent years undoing them. Why should our children go through the same pain? What is this book about? As parents, what if we had to groom one ability in our children that matters not only for money management and investing but for every aspect of life? My answer: Sound decision-making. So, in this book, we meet Chinchu, who is about to turn 10. The story follows what he wants for his birthday and how his parents plan it, while also teaching him key ideas about decision-making and money management. What readers say! 
Feedback from a young reader after reading Chinchu Gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from a young age. The importance of money management and decision-making based on their wants and needs. Very nicely written in simple terms. - Arun.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Our publications
- Your Ultimate Guide to Travel. This is an in-depth exploration of vacation planning, including how to find affordable flights, budget accommodations, and practical travel tips. It also examines the benefits of travelling slowly, both financially and psychologically, with links to relevant web pages and guidance at every step. Get the PDF for Rs 300 (instant download)
- How to profit from content writing: Our ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!