Just 38 percent of Franklin Templeton’s unitholders voted: SEBI-appointed observer
The observer elaborated on a number of steps that the fund house could have taken to ensure a more robust exercise January 21, 2021 / 03:14 PM IST
The observer’s report on the recently-concluded e-voting held by Franklin Templeton Mutual Fund (FT MF) was submitted to the Supreme Court (SC). It said that the e-voting exercise was generally conducted according to the e-voting notices sent by FT MF. “However, there were many grey areas in the procedure adopted, which raised doubts and apprehensions in the minds of investors,” the report said.
The observer elaborated on a number of steps that the fund house could have taken to ensure a more robust exercise. For starters, it said that unitholders of the six schemes that are sought to be wound up, should have got one vote for each unit they held. The fund house had, on the other hand, allowed investors only as many votes as the number of foli
Balanced or aggressive hybrid funds saw sustained outflows last year as subdued performance and mis-selling led investors to pull out money. Last year, the category saw outflows of over Rs 24,000 crore, data from the Association of Mutual Funds in India (Amfi) shows. “Balanced funds were sold and misunderstood as ‘safe’ products. Last year’s market crash, however, led to significant capital erosion, which prompted investors to move out of such funds. A lot of investors had also invested on the premise that they would get consistent dividends, which did not materialise,” said Amol Joshi, founder, Plan Rupee Investment Services. The funds were also mis-sold by distributors, especially by a number of bank branches, which sold them as products that could provide consistent dividends, said people in the know.
Read more about Franklin Templeton gets investors nod for winding up six schemes on Business Standard. The fund house could take second vote for appointing a liquidator
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