Franklin Templeton debt mutual funds worth Rs.28000 crore have suspended operation due to redemption pressures. This could have a cascading effect on other debt mutual funds. What happens to retail investors’ money invested in debt debt funds considered safe relative to equity?
This is a result of mismanaged economy/financial system which is now putting at risk massive savings of common people whom MFs have ended up selling debt paper of crony defaulters in the system who still live In luxury after leaving behind unpaid loans of Rs. 5-7 lakh crore!
Small saver & retail investors have had nowhere to hide in the last few years as the economy/financial system has taken a turn for the worse. Bank FD rates are down. Real estate down. 90% of listed equities have collapsed. Now debt inv in MFs are losing value. Total disaster!
