Hopes of impending revival slows outflow from equity MF schemes in September
Hopes of an impending economic revival has narrowed the rate of net outflows from equity mutual fund schemes in September.
 
The data from the Association of Mutual Funds in India (AMFI) showed that net outflow stood at Rs734.40 crore in September compared with an outflow of Rs 4,000 crore in August.
 
In July, the net outflows stood at Rs2,480.35 crore. Contributions through systematic investment remained flat at Rs7,788 crore over the previous month in September.
 
According to NS Venkatesh, Chief Executive, AMFI: "Steady Y-o-Y as also Q-o-Q rise in average AUMs for the MF industry during the July to Sep tember 2020 quarter at Rs27.74 lakh crore is reflective of continued confidence of growing number of investors in Mutual Fund as an asset class for fulfilling long term wealth creation objective."
 
"Preference to Large and Mid-Cap funds, Focused funds category, as also continued strong emergence of ETFs as the low-cost mutual fund investment avenue, have been the high points during September 2020. On the Debt side, investors have preferred to continue with their investment in Banking and PSU Fund, Short Duration Funds as also overnight funds."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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  • Franklin Templeton Audit Report Finds Several Wrongdoings by Key Management Personnel: Report
    A forensic audit has indicated several wrongdoings, including insider trading, by the key management personnel of Franklin Templeton Asset Management (India), says a report from Moneycontrol.
     
    The report says, "Certain key officials of the fund had redeemed their personal investments just before the formal announcement of the closure of six debt schemes and made money during that time, the audit report by Choksi & Choksi pointed out."
     
    "The Choksi & Choksi report indicates that the fund gave favours to certain companies it had invested in by not exercising the put option, despite the suggestions given by the risk management committee to its chief investment officer (CIO) to do so," the report says.
     
    Quoting sources, the report says, market regulator Securities & Exchange Board of India (SEBI) may look into these redemptions from the perspective of insider trading regulations.
     
    On 23 April 2020, Franklin Templeton had announced shutting down six debt schemes due topoor and illiquid investments amid the coronavirus crisis, leaving lakhs of investors in the lurch. The total assets under management (AUM) of the six schemes were over Rs25,000 crore, spread across Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund. (Read: Rs30,000 Crore Stuck in Franklin India Proves Why Debt MF Scheme Categories Are Not Worth the Risk)
     
    Subsequently in May 2020, Franklin Templeton’s global CEO Jennifer M Johnson blamed markets regulator Securities and Exchange Board of India's (SEBI’s) October 2019 decision to allow mutual funds to invest only 10% in unlisted instruments, as one of the reasons for closing down these six schemes.
     
    Meanwhile, Chennai Financial Markets and Accountability (CFMA), an investor group, is contemplating filing a class-action suit against Franklin Templeton Mutual Fund (FTMF) for recovery of money and to claim damages, says a senior office-bearer.
     
    Manoj K Sheth, president of CFMA, while speaking with Moneylife, says, "We are collecting information from investors and would file the class action suit against FTMF in Madras High Court. We have received information from about 300 investors till date and more would be joining the suit soon."
     
    "If no timely corrective action is taken, then the risk is exposing three crore investors with risk exposure of Rs26 lakh crore who will have no faith in the terminology called “investor protection” or “mutual fund sahi hain!" he added. (Read: Franklin Templeton Debt MF Schemes: Chennai-based CFMA Gets Ready to File Class Action Suit)
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    COMMENTS

    prasad.talasila

    3 weeks ago

    The moneycontrol article mentioned above doesn't provide a link to copy of the forensic audit report. If this report is in the public domain, kindly provide an access to the same or provide a link to an online report. Thanks.

    drsreerajr

    3 weeks ago

    Mutual funds sahi NAHI hai , these fund houses are proving it time n again

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