MFs Confident After RBI’s Fund Offer

The Government has come out strongly with a huge fund meant to support the Mutual Fund (MF) industry after the recent collapse of a few funds including the major Franklin Templeton (FT) Mutual Fund. But only `2,430 crore out of the `50,000 crore allotted for the purpose was utilized till June 11, which is more than two months out of the 90-day period allowed by the government. The low offtake could mean that most major players in the industry feel confident about their future. An increased volatility in capital markets has led to liquidity strains in the Mutual Fund (MF) industry, forcing companies like Franklin Templeton (FT) Mutual Fund to wind up six of its credit-focused debt schemes on April 23, 2020. This was further intensified by the redemption pressure followed by a contagious effect on the overall industry. In a move to ease liquidity pressure on MFs, the Reserve Bank of India...