[JediKnight]

Franklin marked down the value of the Vodafone-Idea papers to zero but has not created a side-pocket. As per media articles they cannot use side pocketing till the rating of the Vodafone-Idea papers goes below investment grade which has not not happened till now. What will happen now if suppose vodafone actually pays up. Will the NAV rise ? If a new investor invests now in the affected funds then suppose if Vodafone pays up will he get the benefit also ?

[RiGOD]

Originally Posted by JediKnight

Franklin marked down the value of the Vodafone-Idea papers to zero but has not created a side-pocket. As per media articles they cannot use side pocketing till the rating of the Vodafone-Idea papers goes below investment grade which has not not happened till now. What will happen now if suppose vodafone actually pays up. Will the NAV rise ? If a new investor invests now in the affected funds then suppose if Vodafone pays up will he get the benefit also ?

You can check this out for more details

https://www.pscp.tv/w/1lDGLozjXDZKm

[Simhi]

Received email from Franklin Templeton regarding Creation of Segregated Portfolio.


Extract from email: We have received Board of Trustees approval to create a segregated portfolio in respect of securities issued by VODAFONE IDEA LTD in Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund with effect from January 24 2020, due to a rating downgrade of certain securities issued by Vodafone Idea Ltd to CRISIL BB (Rating watch with negative implications) i.e. below investment grade by CRISIL.

All investors who were existing in the fund as on the date of the rating downgrade (credit event) will receive units in the segregated portfolio.

[RiGOD]

Originally Posted by Simhi

Received email from Franklin Templeton regarding Creation of Segregated Portfolio.


Extract from email: We have received Board of Trustees approval to create a segregated portfolio in respect of securities issued by VODAFONE IDEA LTD in Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund with effect from January 24 2020, due to a rating downgrade of certain securities issued by Vodafone Idea Ltd to CRISIL BB (Rating watch with negative implications) i.e. below investment grade by CRISIL.

All investors who were existing in the fund as on the date of the rating downgrade (credit event) will receive units in the segregated portfolio.

Yeah, I too received the same

[curiousElf]

Folks, anyone aware of how the tax treatment for our Franklin funds will work now that the sidepocket has been created?

Does that mean if I redeem units from the main portfolio (sans the segregated units) - there will be a capital gains tax that I have to pay? Franklin site shows the main portfolio cost as the total amount invested. The sidepocket current cost is showing up as 0.

Does this mean that in case I redeem units from the main portfolio I can claim a capital gains loss for this year and in the case of recovery on the sidepocket I will have to pay capital gains on the entire proceeds (as acquisition cost is 0) instead of only on the gains?

A bit confused and the CAs I have talked to don't seem to be too confident about how to handle it (Maybe I need better CAs) so asking here in case someone has already dealt with these issues.

I have contacted another CA and will post on this thread if I get any insight.

[DigitalOne]

Originally Posted by curiousElf

Folks, anyone aware of how the tax treatment for our Franklin funds will work now that the sidepocket has been created?

Many have asked the same question here on the FreeFincal site. Maybe the author would answer. I remember some bhpian saying that they know Dr. Pattabiraman, the founder of Freefincal and also has published on this site as a guest. If the bhpian can ask Dr.Pattabiraman to answer these questions, that would be good.

[Jaguar]

I remember a post here about investing in commercial real estate via the MF route. Not able to find it now. Can someone please share the link/info again?

[Latheesh]

I have SIP running in few MF from Franklin, ICICI, Mirae, and Nippon (Reliance). Now I am looking for liquid mutual fund to park some money for few months. Which among them has good liquid fund? Do I need to explore outside these fund houses?

[hothatchaway]

ICICI liquid fund is good.

[bullrun87]

Originally Posted by Latheesh

I have SIP running in few MF from Franklin, ICICI, Mirae, and Nippon (Reliance). Now I am looking for liquid mutual fund to park some money for few months. Which among them has good liquid fund? Do I need to explore outside these fund houses?

When investing in a liquid fund nowadays it is essential to have insta redeem feature upto 50000 straight into bank account. franklin and icici provide this from their apps so you can choose from them. Mirae doesnt even have an app. Icici liquid is the most diversified and will be safer.

[ruzbehxyz]

SBI Mutual Fund has become the largest asset manager in India, toppling HDFC Asset Management Company. The fund house jumped from the third spot at the end of December to the top in January.

SBI MF’s asset under management (AUM) stood at Rs 3.82 lakh crore at the end of January, ahead of Rs 3.79 lakh crore managed by HDFC AMC and Rs 3.68 lakh crore of ICICI Prudential MF.

SBI MF is already the largest equity investor among funds houses with an AUM at Rs 1.93 lakh crore. Its debt portfolio stood at Rs 1.63 lakh crore, third largest among all fund managers.

In January, AUM of SBI MF grew by Rs 21,000 crore month-on-month, of which growth in equity portfolio was nearly Rs 3,000 crore and debt at Rs 15,000 crore. The fund house operates 695 schemes of which 334 are open-ended and 361 are close-ended.

The asset management arm of State Bank of India has the largest exposure to HDFC Bank at Rs 19,052 crore as of January 31, data available with corporate database Ace Equity showed. Exposure to ICICI Bank and Reliance Industries stands at Rs 11,365 crore and 11,030 crore, respectively.

Among other key investments of the fund manager includes HDFC, Kotak Mahindra Bank, Infosys, Axis Bank, State Bank of India, Tata Consultancy Services, ITC and Bharti Airtel, among others.

Source: https://m.economictimes.com/wealth/p...ign=ETFBWealth

[callvvijay]

Experts,

My friend is in need of some help in investment ideas. He has got some ~8+L (probably, a li'l more) - which, he had initially thought of investing in house-renovation plans. However, the plan is shelved for now - and he wants to invest this money.

He is not dependent on this money for the next 5+ years at the very least and is expecting avenues which could generate good returns.

Suggestions please!


Thanks,
Vijay

[Old_Salt]

Have been following the Coronavirus effect globally , with many major shipping companies showing blank sailings in Chinese ports and came across this news article today.
Wonder how the Indian Markets will fare in the coming months.

http://https://www.indiatoday.in/bus...243-2020-02-17

[Simhi]

Originally Posted by callvvijay

He is not dependent on this money for the next 5+ years at the very least and is expecting avenues which could generate good returns.

You have not mentioned how risk averse is your friend. He can spread the money across few debt schemes. If your friend is ready to take risk, he can start STP to transfer fixed amount every month out of debt schemes to equity schemes.

[carboy]

Originally Posted by Simhi

You have not mentioned how risk averse is your friend. He can spread the money across few debt schemes.

Considering how many debt schemes have not been able to preserve capital, I would recommend only funds which invest solely in Government debt. I would even prefer RBI Bonds (7%) or NSC/KVP over Debt funds in the lower tax brackets.