Tweet Thread on what just happened to Franklin Templeton Funds - Credit Risk Funds
First - Franklin Templeton today announced the winding down of SIX of its Debt Funds (which had credit risk)
This is effective tomorrow i.e. 24th April 2020
This is an unprecedented move
(1/n)
Which are these Funds?
These Funds are
Franklin Low Duration
Franklin Dynamic Accrual
Franklin Credit Risk Fund
Franklin Short Term Income
Franklin Ultra Short Bond
Franklin Income Opps Fund
All these funds have been wind down with immediate effect
(2/n)
What happens to my investments in this wind-down? They will return my money?
Ans: This wind-down is similar to a lock-down
These schemes will not allow any further transactions, no purchases, no redemptions
It's like the entire scheme becomes a segregated portfolio
(3/n)
Whoa! What do you mean? Tell me more clearly
These six schemes put together as of date have an AUM of Rs. 28,000 cr. This entire AUM is now stuck as it is. You cannot redeem
What do u mean, I cannot redeem?
Simply put, you cannot withdraw any monies
(4/n)
Cmon don't joke, my money is stuck till how long?
Ans: It's not a joke. Here;s the formal notice from Franklin Templeton
So u mean, my money is gone? They will never open these schemes
Ans: Yes, the schemes are wound down. They will never open again
It will work like a segregated portfolio i.e. the day they get any interest,, maturity from any of the holdings it will distributed to all
(6/n)
So I will get my money back soon?
Ans: As and when the underlying portfolio instruments mature or the scheme receives the money back (in case interest or defaults etc) they will pay it back to you.
So that's that simply put. Any specific Qs will be happy to answer
(7/n)
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Today Income Tax Department has announced rollout of a new statement - AIS (Annual Information Statement)
This will give u all details (well almost all!) about YOUR financial transactions during the year
This is a thread to tell u what it is and how do u get the AIS
(1/n)
First of all,
What is AIS (Annual Information Statement)?
You know earlier Income Tax used to give statement 26AS
AIS is a much detailed one - with many more details included - like your Savings Interest, all Mutual Fund txns during the year etc
(2/n)
Will 26AS be stopped?
a) Now you can get both 26AS and also AIS
b) Both put together, Income Tax department knows all your financial txns
c) And it's good as now you will find it very easy to know and submit details for your Income Tax returns
Lot of investors keep messaging me asking abt
a) Status of Court Hearing
b) Status of the 6 schemes that are being wound down
c) Four schemes being +ve. What does it mean?
So am starting this thread, which I will keep updating regularly
(1/n)
First : What is status of Court Hearings?
Court hearings are proceeding on a daily basis
Latest update is SEBI has agreed to give the court
a) Copy of Forensic report done of FT
b) Response of FT on this report
SEBI wants this to be confidential report. Court will decide
(2/n)
Court Update:
All parties except FT have completed their first set of arguments and responses. FT will give their responses also soon to the Court
With daily hearings, we do expect that by end of Sept or early Oct, there will be a conclusive decision for investors
(3/n)
Some MFDs have asked me the process Declaration of Self Certification (DSC) for FY1920
This is a quick thread to help you do the DSC this year
Option 1: Do Digitally with OTP (No paper work or sign)
Option 2: Print, Sign and Upload
(1/n)
Option 1: Digitally with OTP only
1. Go to web.camsonline.com/AMFI/Login.aspx 2. Choose ARN Renewal login 3. Login with ARN, password 4. Go to Update Profile 5. Select Self Declaration 6. Choose OTP Button 7. Choose with sub-broker or no sub broker 8. Tick boxes 9. Click Generate OTP
(2/n)
10. U will get OTP on both email and regd mobile 11. Both OTPs will be different 12. You have to enter both these OTPs 13. Click submit 14. Your DSC is successfully submitted
It is complete, u will get email acknowledgement immediately. Save it