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Should I stay invested in Franklin Templeton's funds?

Business conditions are cloudy for Franklin but that may not impact its other funds unless something untoward happens, says Dhirendra Kumar

With Franklin Templeton winding up six schemes, do you think one can continue to stay invested in Franklin funds or is it better to exit?
- Suhasini

It depends. I would look at the situation of Franklin Templeton Mutual Fund as a fairly narrow case of six of its credit-oriented funds. Those six funds were quite unique in a sense that they were chasing high yields and they met with an accident that, too, in fairly bad weather. But I think Franklin Templeton has a good set of equity and debt funds. In fact, if you look at the six funds, which are now under the winding-up process, they were sizable and getting all the attention. That apart, all their other funds have a relatively long history and have remained reasonably stable. So, I do not think there is much to panic there.

Having said that, the business conditions are cloudy for Franklin Templeton, but I wonder if that will have any bearing on the general performance of all its other funds unless we have something untoward happening.

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