Mumbai: US-based Franklin Templeton Mutual Fund has announced that it will close six of its credit funds in India due to liquidity issues in the wake of the coronavirus crisis. Now, the investors will not be able to make any fresh purchases after the cut-off date i.e. April 23. Also Read - Rajesh Khattar Denies Bankruptcy Reports: 'People Said I Was Broke, Mere Paas Khaane Ke Paise Nahi Hain'

“There has been a dramatic and sustained fall in liquidity in certain segments of the corporate bonds market on account of the Covid-19 crisis and the resultant lock-down of the Indian economy which was necessary to address the same,” it said in a statement. Also Read - THIS City in India to Begin Door-to-door Vaccination Drive From Monday. All You Need to Know

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1) The funds which will be shut are Franklin India Low Duration Fund, Ultra Short Bond Fund, Short Term Income Plan, Credit Risk Fund, Dynamic Accrual Fund, Income Opportunities Fund.

2) The fund house said that mutual funds, especially in the fixed income segment, are facing continuous and heightened redemptions.

3) The statement noted that the Trustees of Franklin Templeton Mutual Fund in India, after careful analysis are of “the considered opinion that an event has occurred, which requires these schemes to be wound up and that this is the only viable option to preserve value for unitholders and to enable an orderly and equitable exit for all investors in these unprecedented circumstances”.

4) It said that individual emails are being dispatched to the unit holders regarding the closure of the schemes.

5) The trustee or the people authorised by it will continue to realise or dispose-off the assets of the schemes in the best interest of the unit holders. The sale proceeds after discharge of all liabilities and expenses will be paid to the unit holders in proportion to their respective interests in the assets of schemes.

How soon will investors get the money back?

The existing investors will not be able to withdraw their money immediately or on their own. They will have to wait till the maturity of the scheme, to be able to withdraw their money.