What is Franklin Templeton Crisis? 6 Franklin Templeton Debt Funds Closed Explained By CA Rachana

Learn what is #FranklinTempleton #crisis? and which 6 Debt funds that Franklin Templeton Investments have closed? And how and when the Investors will get their money back. In this video CA Rachana Ranade has explained how this situation was built and how Franklin Templeton Investments was able to close 6 #DebtFunds and much more.
You can get my Stock Market courses on www.rachanaran... It’s an opportunity to learn 65+ concepts relating to Basics of Stock Market in 11 sessions! Feel free to WhatsApp on [phone] if you have any purchase-related queries.
Android App: bit.ly/CARRAnd...
iOS App: bit.ly/CARRiOSApp
Basics of Stock Market Course: course.rachana...
--------------------------------------------------------------------------------------------------------------------------------
Join my KZbin Memberships: bit.ly/JoinCAR...
-----------------------------------------------------------------------------------------------------------------------------------
✔️ To Invest in Cryptocurrencies try WazirX► link.rachanara...
--------------------------------------------------------------------------------------------------------------
✔️ If you want to create your demat account then please click here for assistance:
forms.gle/ddA7...
--------------------------------------------------------------------------------------------------------------
Insure your life and health
✔️ Life Insurance► bit.ly/3tYenqr
✔️Term Insurance►bit.ly/3ynVssD
______________________________________________________________________
To invest in themes based portfolios, check out the following Smallcases
✔️ Top 100 stock ► link.smallcase...
✔️ All-Weather Investing ► link.smallcase...
_____________________________________________________________________
Facebook► bit.ly/CARRFac...
Telegram ► t.me/CARachana...
Instagram► bit.ly/CARRIns...
Twitter► bit.ly/CARRTwi...
Linkedin► bit.ly/CARRLin...
------------------------------------------------------------------------------------------------------------------------
Playlist:
Basics of Stock Market For Beginners: link.rachanara...
Books to read: link.rachanara...

[@CARachanaRanade]

✔️ Invest in Knowledge: social.rachanaranade.com/Courses ✔️Kickstart your Investment Journey:link.rachanaranade.com/Zerodha ✔️Secure your Life and Health: - Life Insurance► bit.ly/3tYenqr - Health Insurance►bit.ly/3ynVssD

[@bot-pb5ok]

Should indian education system have investment as a subject.

[@zak_2414]

Impossible hai.

[@samtenda9815]

then student will consider that this is easiest path without doing anything just invest, sell, buy

[@anona1443]

Yes

[@anona1443]

It's there, simple interest, compound Interest is there in maths

[@ravitalreja2424]

Indian education should have Investment Subject from 8th Standard to 12th Standard to make people aware of Income & Debts.

[@anithabakthavathsalu674]

Archana, there are no words to express my admiration. Oh God ex ellent explanation , even a lay man can understand . Wow . You. Are a good teacher .

[@saikumarosj]

RACHANA , NOT ARCHANA

[@shreyaspetkar5413]

Every time I came I got more & more knowledge , Thnk u mam 👍🏻yes need more videos like tht

[@SaveandInvestSmartly]

The move from Franklin Templeton has created panic in the investors because this could lead the direction for many other AMCs to follow. Every AMC must be facing similar redemption pressure and if there is no liquidity, bonds have to be sold at very low prices in secondary market, thus bringing down the NAV of the funds.

[@sanjaysambhe8653]

So will it be negative return for investors? If nav falls

[@navneetsingh920]

It was good explanation. Keep covering current affairs like this.

[@jaipra2]

Iii

[@meenakshilal9491]

I watched this video with my 8 year old son. He understood two concepts that trustees make decision whether to continue or close , and that Franklin is unable to pay back as it doesn't have any money left with it....that's the power of a good teacher....even the most difficult and advanced concepts are explained in the most effective manner....keep up the good work...thank you

[@ujjwalbisht.8539]

one of the best KZbinrs out there. the way she explains everything is amazing, such complicated things become easy to understand and doing so in a go! hats off to you mam. started watching you a month ago and I liked your videos so much that I have watched them all. thanks for sharing all the knowledge.

[@Mukundpawar44]

The entire Franklin Templeton Investments saga has been nicely explained by Mrs. Rachana Ranade. Great video.

[@TheSrij]

Its a Saga??

[@babus8587]

Though I pressed liked button as u covered most of things. U could have covered about RBI SLF-MF of 50,000 crore package and how its going to help MFs

[@CoffeeTraveller]

I wished the same. And I found a good one here - kzbin.info/www/bejne/Y2ezqJ-LbNOor5o. Thank me later.

[@karanpreetsingh5842]

Could you please keep a session on ETFs? Niftybees, bankbees, goldbees?

[@bajrangsharma5258]

Ma'am really interesting video.. Want more videos on current situation like this video. Thank you ma'am 😊

[@shankarvelli7264]

I am pleased to see your regular and continuous coverage on the 6 debt schemes of Franklin which were closed in Apr 2020. However, why is no body questioning them on slow speed of active monetisation of the assets under these schemes. It has been around 6 months now since SC has ordered them to start returning the money to investors. Till date they have returned only about 50-60%. We expect your kind of organisations to raise this issue and seek questions on behalf of investors.

[@capareshrawal1116]

I just exited from Low duration fund in June 2019 but I could just wonder how the investors will regain trust in the debt funds and when the existing investors will get their money .

[@amanpareek7485]

Sir it's not about investing in the debt fund. They are invested in the funds having the low credit rating like A, BBB etc.

[@pcmobitab]

My goodness!! You explain things so clearly...Found this channel today while searching..already became a fan.

[@peptalks365]

After Vodafone exposure I had withdrawn all the money which is huge portion of my earnings. After this mess I am feeling more scared than lucky. Hard lesson

[@MrKhannasahil]

mutual funds in india are so seriously subject to market risk i have realized.

[@vinaytejagunnam8508]

hahaha

[@moneymakingmonk7005]

very true, this pandemic has opened everybody's eyes.

[@kusumaprasad3565]

Haha

[@adityadandekar1645]

MF anywhr in world are subject to mkt risk..thr nothing new in tht

[@umkenterprise6901]

Ma'am, How come this has only affected Franklin and no one else? Are all other funds invest in debts of AAA + companies and Franklin is the only one black sheep ?

[@Saurabh-de9st]

It looks like FT was the only culprit by looking their portfolio

[@CCGaru]

Possibility that the panic may spread to other AMC too sooner and later and a few of them may land up in similar soup with the gloomy economy scenario in future.

[@Oralmirror]

Hello ..i m totally a non finance background person (medical background) and i recently saw ur basics of stock market video and subscribed for the course and intend to do the entire series . I wanted to tell you that u are a wonderful speaker who can convey even the most difficult concepts in the most simplest form and is an guiding idol for many independent working women like me. I seriously admire ur knowledge and skill and want to learn more.. Pls keep posting more informative videos n help evryone learn and grow.

[@NikhLogic]

Like always, another amazing video! Love the way you keep it so simple while explaining! Great content! I definitely have picked up points to use on my KZbin channel as well. Thanks! ✅

[@octotube463]

Sure! Want more videos like these. Loved watching this video feels like my last 15 minutes worth a lot.

[@patelalaska6876]

Thank you Mam. What are the other mutual funds with majority of their investment in lower rated bonds ??

[@jyotipatil7485]

Wounding up of scheme is not regular phenomenon. It shows loopwhole in the system. And responsibility of this should be taken by SEBI, RBI and AMFI.

[@rahulbhalerao2266]

RBI has no role in MF regulation. Further what kind of action you contemplate in light of SEBI regulation 38 whcih was explained in the video. AMFI is jus an association of MF's. no teeth.Also let us know what is the loop"w"hole.

[@nishantsinghal599]

One of the best explanations of the entire saga. Couldn't be better👍👍

[@cline2star]

Just a humour But you are like the professor in Money Heist Correcting ur specs again n again😂🔥

[@pavithrasankaran]

Pls no

[@varunbeach5366]

Stylish attitude 👍

[@lokesharora3322]

no, but mam is professor for us all hope we all have to honour her with such intelligent character name PROFESSOR ,FROM NOW ONWARDS. THE MASTER MIND #PROFESSOR

[@rajeshnarula9494]

Are Franklin's Equity MF's safe or not ? Rachnaji, pl reply.

[@everest2nd]

Well explained Ma'am. Keep it up. By the way do you get up at 6 am ?????? Nightmarish !

[@deepasinghal4729]

Excellent. All questions identified and answered simply.

[@ronandsouza1]

Nowdays for any financial know how I dont watch any business channel I just type the "subject" and rachana Ranade. Hats off to the way you explain.....you actually explain every possible mindboggling word in your sentence

[@vivekgarud2952]

Thanks Madam As you said AMC has right to close the scheme as per sebi regulations. In debt fund , is there any right to Fund House for writing off any holdings in scheme ?

[@adityadandekar1645]

As per SEBI regulations ..if thr is default by issuer..AMC has to write it of from tht fund

[@zaheerahmed72]

U are to good in explaining the topic very nicely 👍

[@kundanshinde7520]

खूपच छान माहिती, सोप्या पद्धतीने समजून सांगितली आहे. मी तर फोलोअर झालोय.

[@shamikgupta2018]

Ma'am this commendable that you made such valuable video in a single take

[@kundanbhagwati1]

Are these low rated bonds also known as junk bonds. If so then, ma’am would request you to list all the fund house who is doing the same as there was a scam in the US securities board a few decades back where famous fund manager Mr. Michael Milken was found guilty.

[@mariamaceesay6223]

Wow this is just crazy! Mutual funds have trustee I thought they have board of directors. This is new to me. Yeah right that means they knew even before COVID-19 that there was a huge problem with their investments. I did not received any letter stating that there was a problem. All I knew is that I lost my money. 50% of my investments was with Franklin Templeton. I sold the rest of my shares and that's a good move that I made. My neighbor lost all her investments with them. This is so sad and devastating. Are we going to get our money back? This is poor and manipulative business practices and they should be hold accountable.

[@omgupta_25]

Hello man Thanks for giving us a great video lectures. Please make a video on mirae assets blue chip - direct growth fund.

[@priyatripathi9083]

Can u suggest 1.what could have been some better wayout, 2. also impact on overall mutual fund market 3. Does RBI really helping by proving 50crore help?

[@wilmadsouza8347]

Are other funds of Franklin safe to invest? Specially long term ones?

[@shivohamsivamaharaj]

My favorite teacher explained well

[@karanmalik7336]

Hello mam, I have seen, enjoyed and learned from many of your investment videos. I have question for you : Warren Buffett once said business schools don't teach how to value businesses, the truth about investing is valuing businesses on the basis of how much cash they can generate. Please please please make a video series on how to actually value a business using it's financial reports. I know this a narrow question still broader in scope but please try to understand you can create a breakthrough others (including IIMs haven't).

[@padmakarkulkarni9921]

Very well explained in very simple and lucid language .

[@prachikolhatkar7951]

Watched your video for the first time. I am M. Com. and CA inter by qualification. Into financial audit for past 7 years. Had not come across any you tube channel where financial world is explained in such a simple and clear manner. Would check other videos!!!

[@tabassum607jabeen9]

Brilliantly explained Rachna, I work for a reputed bank of USA and never saw anybody explaining things like this, absolutely in lemons language. Good to hear it in basic terminology, awaiting for your next videos, keep up this good work.

[@anushijain3596]

I was waiting for this topic discussed by you!

[@555jashnegandhi9]

Very nicely explained ma'am. Understood everything.

[@muralic7756]

Ur teaching skills is amazing and u doing great job and pls continue for ever. Ur teaching will change the economy through more investing by watching ur videos... Great work..

[@keshavgehlot4358]

Aap jese India mai rahege tou India aage badega thanks mam☺

[@ponparithiellappan1738]

Lovely ..well explained.. easily any lay man can understand

[@babuksrikanth]

Mam, your explanation is dam good and for the first time I understood the process of mutual funds schemes...

[@drmrahul]

you are really knowledgBle and a good teacher. Best wishes

[@ArpitaB2007]

TQ so much for the detailed video with superb explanation as usual:) Could you please make a video on how could RBI Rs50000cr relief package could comfort investors??

[@vikkyram6998]

Once im having a sleeping problem in nights i used to see and learn a lot new info from ur videos..now my mind stops me to sleep and tells me to watch your contents to get more financial news and market scenarios...Good efforts mam..

[@sundarkumarsundarsun]

Spent only 15.51 minutes with CA RR video and understood the FT problem without further questions.thank you ..

[@ninjutsurg7438]

Hello Rachana - You have explained it very well. Thanks a lot.

[@ravisundararajan9805]

hi rachana..excellent way of explaining in a simple and easily understandable by any common man...thank you so much..keep rocking with your beautiful smile..

[@koduriapprao1603]

A lot NBFCs, the paper of which these debt funds are holding have been rolling over money literally as a business model. In that, they come out with a bond issue, use that money to extend loans where they earn a higher interest from Borrowers than they have to service in the bond issue. This goes on well until one of the two happens: Borrowers stop servicing (interest) on loans Borrowers default At this point, RBI’s, moratorium allows Borrowers to not service interest on these loans for until the lockdown lasts. The issuing companies however have to service the interest that they in turn pay on these bonds. To deal with a potential credit crisis, RBI came out with Targeted Long Term Repo Operations (TLTROs) where they allowed (rather encouraged) banks to lend to NBFCs. To do so, banks will receive cheaper credit from the RBI (i.e. at Repo rate of 4.4%). Of course, banks actually stand to make a lot more net interest margin since they will be buying fresh or secondary market bonds yielding a lot more than 4.4%. The total TLTRO operation size is Rs. 1 lakh Crore with detailed guidelines on the size and type of bonds, and the size and type of NBFC of which the bonds should be purchased. There is an allocation for medium, small and large sized NBFCs. Yet, there has not been much offtake from banks under RBIs TLTRO. One would think that with so many companies facing redemption pressures over the next few months, many of which are sold large corporations, it is a great opportunity for banks to earn a higher interest differential. Why then are banks shying away? This is where the worry is!

[@frnd4741]

Wow wished had Interesting Teachers like you during my School days too, would have enjoyed going to school.😄

[@rajavel6123]

What will happen to Franklin Smaller companies growth? Will this impact this? Iam holding this smallcap fund

[@sabarikambli9549]

Rachana you have very good clarity of thought due to which your videos are really simple and good

[@sane_guy07]

toh fir Mutual funds toh itna "sahi nahi" hai.. thank you for the explanation.. so now please tell us how should we choose a debt fund..

[@JKInvestments]

"Muutal Funds Sahi Hai" is campaign to target Small Retail Investors, especially Direct investors. Finally they will be the big losers.

[@Coolshorts80]

Very good information in simple language a lot of thanks

[@pranjalsinha819]

really simplified this in a really interactive and easy way for people to understand. Waiting for more videos.

[@MrLaukikjadhav]

Very clear and crisp information on Franklin . It’s always a pleasure to watch your videos on current happenings as well as stock specific

[@bravocharlie9294]

layman can understand with such a simple examples 👍 u r real teacher

[@sandeeppaul5614]

Mam ap bhot ache se guide karte ho apse revest h hindi me bhi video bnao plz mam

[@B2BMastery]

Rachana is : a) Consise in her explanations b) Considerate to a broader audience c) CA with a mission Love your enthusiasm and content. Life time subscriber here

[@gauravgupta8126]

Very informative and simple to understand. Keep posting pls

[@pvs4413]

i think problem is deeper. now franklin has stopped redemption for equity fund investors of prior 2011 prior kyc era in violation of sebi orders of 23 dec 2011. they now suddenly say kyc is reqd for all holders even for prior 2011 investment in case of redemption. forensic audit of franklin is reqd. many of their offices are shut in name of covid. how kyc can be done should investors risk covid infection running from one office to another.

[@ujjwalbisht.8539]

yes, we definitely want you to make such more videos, thanks a lot.

[@aashitasabharwal1230]

I so wanted to know about this Franklin case and I was about to put this request forward to you and as soon as I opened KZbin, what I see is that you have already made a video and posted it. Thank You so much for being pro-active and helping us.

[@raogopinath]

A complex subject explained in simple/understandable terms. Thanks.

[@samidhamohile2099]

You are best in explaining the difficult topic in a simple language. Liked the video.

[@panveenarang715]

loved how you explain so easily

[@Oceansta]

Questions: 1. Why did this happen only with FTMF and no one else? 2. Ultra Short Bond Fund is supposed to invest only in instruments that mature in every short period so why were they not able to repay the investors after a few months? 3. Is it true that they invested in instruments with a much longer maturity period (1-5 yrs) for Ultra Short Bond Fund and if yes, is that legal? 4. Now that the market has stabilised and hit all-time highs (Jan 2021) why can't they cancel the winding up and resume the funds? 5. Who is to blame for this fiasco? The Fund Managers or Trustees or someone else?

[@sudhirsinghtanwar9818]

Good work done. Nice way of talking, mixing hindi and english adds to the flavour. All the best.

[@furqaannasim8031]

please make more videos regarding current issues your videos are very easy to understand mam

[@mahendrakolhapure]

Excellent!! You have cleared all my doubts. Thanks once again.

[@mangeshvaidya3182]

Very well explained. Pl let's know how the RBIs 50k crore going to resolve MF houses issues.

[@sangeetaghonge8691]

Absolutely very easy way to explain. Thanks mam.👏

[@sangeetaghonge8691]

तुम्ही हाडाच्या शिक्षिका आहात. 👏👏

[@ashishkamble748]

Superb explanation mam !! Super se bhi uper !!

[@vasaviboddu]

A biggg woowww to Rachana mam.Lot of work behind this video .

[@shoaibhassan3767]

Rachana its superb on Franklin.Can you arrange a session on crude oil price issue and why gold price go high.

[@chetanbsonawane]

I just love that intro. मी त्यासाठीच येतो 😄

[@cfppuneetnagpal]

Rachna Mam, You have explained the current scenario with Franklin AMC very nicely !! Thanks !

[@srinivasvaranasi1645]

Thank you. Crisp and good summary.

[@srinivasaholla8356]

Wonderfully explained Rachana, can be understood by anyone.

[@bhushanhs7753]

Mam lot of respects.... your videos are simply awesome

[@Rohan-cw3wp]

This is a serious issue mam !! How to avoid this situations?

[@bvkrishnan561]

The corona crisis gas affected the equity market more than the debt market. In fact bond prices have appreciated after Covid outbreak. It is common knowledge that money will flow into quality debt whenever there is a dip in equity indexes. The problem with Franklin was the quality of their debt. They took unnecessary risk by buying commercial paper and now the investors r paying the price.

[@fitsurvivor4781]

After watching few of your videos, I am slowly learning about mutual funds and shares a little. I hope I get a pro in terms of the knowledge related to all of this, so that I invest like a pro. Thank you Rachna. Your way of making people understand is really good. Keep giving examples while teaching us. It gets easier for us to understand things this way. Thanks again. 😇

[@debasishsahu8260]

Mai to fan ho Gaya aapka, You are very good teacher

[@dipeshsharma170]

Ma'am could an intelligent investor be able to identify this crisis before it happened? and how?

[@Ynotme]

oil price crash and tesla shares increase can u talk about this?

[@navneet2649]

Nice explanation, u tried to cover all major points!

[@sachinchopra3344]

Ma'am you are superb... i generally watch videos on youtube but don't comment.....THIS IS MY FIRST COMMENT ON KZbin... & this one is for you ma'am...... the way you teach is fantastic... (specially that think think think part) :P keep spreading the knowledge... Love from an engineering student.. :)

[@muditmohan3627]

This is the best analysis I found on KZbin till now... :)

[@dhruvilshah4226]

Amazing Analysis. Please keep posting such videos

[@pulimamidivenugopal3772]

Super Archana ,very well explained .keep it up .may God bless you

[@akhileshkumar8822]

Very good explanation. Lot of thanks

[@sankaranarayananb297]

Wonderful and a simple explanation 👌👏👏 Master you're 👩‍🏫👩‍⚖️👩‍💻

[@aadityalal]

Should we quit from other franklin equity scheme ? Franklin india focused equity fund & franklin india smaller companies.

[@subhadipchatterjee2585]

it has been very clearly mentioned in this video as well as every possible information coming out of the company, the issue is with these 6 schemes only. there is no connection between these 6 schemes and other investment buckets of the AMC. the company operates as usual. so there is no need to panic.

[@anona1443]

Exit. They should be penalised for hoarding bad binds.

[@adityadandekar1645]

Equity and debt schemes are both diff... And such times when Indian equity is quite well r covering..it is good time to remain invested in equity schemes

[@ohWellWhatThehell]

??? Maybe hold off.until some value is recovered else no new investment punish these idiots

[@lakshsharma5166]

Extremely helpful and informative