This week on 23rd April, Franklin Templeton Mutual fund (one of the top 10) in India announced to close its 6 yield-oriented Credit funds. The announcement came sudden & surprised many. A large number of people now have questions in their mind, why did it happened & Is it still safe to continue investments in mutual funds. Let’s get some clarity, I have clubbed most commonly received questions after this announcement. Feel free to ask any other uncovered question. Questions: 1. What exactly are Equity, Debt & Credit risk funds? 2. Which Credit Funds got closed by Franklin Templeton? 3. Why Franklin Templeton choose to close those Credit funds? 4. Will investors get back their money? 5. Does this announcement affect any other Equity mutual funds run by Franklin Templeton? 6. Can such incident happen with other AMC’s (Fund house) credit fund as well? 7. Is it time to avoid Credit or Debt. mutual funds in current scenario, if yes -what is the altern
Is the fall over in Equity Markets? Over last 10 days, I received phone calls & messages from friends and colleagues. Some of them were first time investors, few others with more exposure to markets. Most of them had a common topic in mind “Recent crash in equity markets”. Everyone wanted to know why this is happening & what will be course of things here on? When I experienced Y2008 market turmoil, I also had similar questions in mind, was looking out for answers. Some answers I could judge correctly & some got answered over time only. Today, coincidentally we have social media through which we can share our leanings & experiences. So, sharing my thoughts with all those with similar interests. I have summed up most commonly asked questions during last 10 days. Feel free to ask anything apart from the list. Questions List: 1. 1 day up, 2 days down with +/- 10% moves. Do equity markets work like this? 2. How Corona can have so much of impact on markets? 3. Are eq