A day after Franklin Templeton Mutual Fund chose to end up six Debt funds as a result of low-rated securities, the mutual fund business and there's absolutely no systemic or sector threat posed by debt funds.
The Association of Mutual Funds in India (AMFI) emphasized the fact that while credit risk funds accounts for a rather small section of the general debt assets, over fifty percent of those assets in debt schemes have a rating of AA or over.
"While approximately 20% to 30 percent of their Entire debt AUM (assets under management) are AAA rated or in money, another 30% to 50% will maintain AA+ or AA evaluation," said Milind Barve, managing director, HDFC Asset Management Company, through a press conference call organized by AMFI.
"It Isn't appropriate to place all credit risk funds in The category. Investors shouldn't panic. This is a one off case and cash at credit risk funds isn't at any substantial danger," he added.
Franklin Templeton Mutual Fund declared It has made a decision to end up six debt funds which have combined assets worth $25,856 crore as on April 22.
"This activity is Limited to the Funds that have material direct exposure to the higher yielding, lower rated credit securities in India who are the most affected by the continuing liquidity crisis on the current market," said a release by Franklin Templeton Mutual Fund. Are Franklin India Dynamic Accrual Fund Franklin India Low Duration Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
5 percent of debt AUM
Nilesh Shah of Kotak Mutual Fund, who's also AMFI's chairman, emphasized the fact that credit risk funds account for only 5 percent of the debt AUM.
"A Vast majority of our funds must have no effect on operations because of an isolated case of winding down in a single mutual fund," said Mr. Shah, while talking to the media throughout the AMFI conference telephone.
The Association of National Exchanges Members of India (ANMI), the umbrella of inventory agents, considers that the sudden closure of six strategies has created a fear in the markets.
The Ministry has been asked by it Of Finance and the Securities and Exchange Board of India (SEBI) to intervene and require speedy action to safeguard investor cash.
"ANMI Humbly asks the Ministry of Finance (MoF) and SEBI to take speedy action for shielding the hard-earned economies of lakhs of investors that have invested in FTMF (Franklin Templeton MF).
"A specialist Committee of mutual fund professionals ought to be shaped by them to Determine the exact difficulty in FTMF schemes," it stated in a letter Composed on Friday. ANMI considers that it is of paramount significance as The confidence of investors in debt mutual funds is in danger, it included.
The Association of Mutual Funds in India (AMFI) emphasized the fact that while credit risk funds accounts for a rather small section of the general debt assets, over fifty percent of those assets in debt schemes have a rating of AA or over.
"While approximately 20% to 30 percent of their Entire debt AUM (assets under management) are AAA rated or in money, another 30% to 50% will maintain AA+ or AA evaluation," said Milind Barve, managing director, HDFC Asset Management Company, through a press conference call organized by AMFI.
"It Isn't appropriate to place all credit risk funds in The category. Investors shouldn't panic. This is a one off case and cash at credit risk funds isn't at any substantial danger," he added.
Franklin Templeton Mutual Fund declared It has made a decision to end up six debt funds which have combined assets worth $25,856 crore as on April 22.
"This activity is Limited to the Funds that have material direct exposure to the higher yielding, lower rated credit securities in India who are the most affected by the continuing liquidity crisis on the current market," said a release by Franklin Templeton Mutual Fund. Are Franklin India Dynamic Accrual Fund Franklin India Low Duration Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund.
5 percent of debt AUM
Nilesh Shah of Kotak Mutual Fund, who's also AMFI's chairman, emphasized the fact that credit risk funds account for only 5 percent of the debt AUM.
"A Vast majority of our funds must have no effect on operations because of an isolated case of winding down in a single mutual fund," said Mr. Shah, while talking to the media throughout the AMFI conference telephone.
The Association of National Exchanges Members of India (ANMI), the umbrella of inventory agents, considers that the sudden closure of six strategies has created a fear in the markets.
The Ministry has been asked by it Of Finance and the Securities and Exchange Board of India (SEBI) to intervene and require speedy action to safeguard investor cash.
"ANMI Humbly asks the Ministry of Finance (MoF) and SEBI to take speedy action for shielding the hard-earned economies of lakhs of investors that have invested in FTMF (Franklin Templeton MF).
"A specialist Committee of mutual fund professionals ought to be shaped by them to Determine the exact difficulty in FTMF schemes," it stated in a letter Composed on Friday. ANMI considers that it is of paramount significance as The confidence of investors in debt mutual funds is in danger, it included.
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