Prime Investor asks investors to exit all Franklin funds
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Synopsis
“Underperformance of the equity mutual fund schemes, slide in assets under management (AUM), loss of confidence, and botched handling of events, likely flight of talent and change of sponsor are some reasons that have led to this decision,” said Prime’s co-founder Vidya Bala.
In response to an email query on the matter, a Franklin spokesperson reiterated its commitment to the Indian mutual fund industry.
Prime Investor, a Chennai-based independent research firm, has asked investors to exit from all schemes managed by Franklin Templeton Mutual Fund.
“Underperformance of the equity mutual fund schemes, slide in assets under management (AUM), loss of confidence, and botched handling of events, likely flight of talent and change of sponsor are some reasons that have led to this decision,” said Prime’s co-founder Vidya Bala.
Domestic stocks may kick off Thursday s session on a positive note, tracking overnight Fed minutes that suggested the US economy was recovering and that the central bank would take some time before rolling back the loose money policy. Mixed cues from other Asian markets, however, may keep the upside capped.
Here s breaking down the pre-market actions.
STATE OF THE MARKETS
Nifty futures on the Singapore Exchange traded 56.50 points, or 0.38 per cent, higher at 14,920 in signs that Dalal Street was headed for a positive start on Thursday.
Tech View: Nifty at inflection point
Nifty needs to break above the key resistance at 14,900 level. Once that happens, the index may see a rally towards 15,300 and beyond that to 15,450 mark, analysts said. A break above 14,900 level and the coil will unwound and one can expect a swift move, they said.
After Budget Day, Investors Withdrew Rs 17,220 Crore From Stocks, Bond Markets After Budget Day, Investors Withdrew Rs 17,220 Crore From Stocks, Bond Markets Corporate bonds saw the biggest outflows in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields
Yields on top-rated rupee corporate notes maturing in three years jumped by 74 basis points
Investors withdrew Rs 17,220 crore ($2.5 billion) from the Indian stock market and company debt mutual funds in February as concerns mounted about the sustainability of returns. Corporate bonds saw the biggest outflows in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields. Equity indexes, which benefit from a stimulus, surged to a fresh record, prompting local investors to book profits.
Investors withdrew 172.2 billion rupees ($2.5 billion) from Indian stock and company debt mutual funds in February as concerns mount about the sustainability of returns.
Corporate bonds saw the biggest outflow in about two years after the government last month announced a bigger-than-expected borrowing plan in its budget, triggering a spike in yields. Equity indexes, which benefit from a stimulus, surged to a fresh record, prompting local investors to book profits. “The period of unusual returns is getting over,” said Vidya Bala, co-founder at Chennai-based research firm Primeinvestor.in. “Also, many investors could be waiting it out till the interest rate environment settles.”
Investors withdrew 172.2 billion rupees ($2.5 billion) from Indian stock and company debt mutual funds in February as concerns mount about the sustainability of returns.