Six Franklin Templeton debt funds were shut down by the management, due to redemption pressure and lack of liquidity in the secondary market for the underlying instruments. It was not the first time that a mutual fund (MF) scheme faced redemption pressure.

What happened to Franklin Templeton Investments?

On April 23, 2020, in a sudden move, Franklin Templeton Mutual Fund announced the winding up of six of its debt mutual fund schemes in India with total assets between Rs 25,000 and Rs 30,000 crore (roughly $3.75–4.25 billion) affecting more than 3 lakh investors.

What happened to Franklin Templeton debt fund crisis?

The six debt schemes of Franklin Templeton Mutual Fund with assets of around ₹26,000 crore were frozen on 23 April, 2020 after they faced unprecedented redemptions. ... As a result, the fund house decided to freeze the debt schemes and eventually wind them up.