Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
COVID-19: Impact on Mutual Funds (Franklin Templeton issue)
Context: Franklin Templeton (FT) Mutual Fund, the ninth largest in India, decided to close its six managed credit funds, which had combined assets under its management of around Rs 28,000 crore (25% of its total assets)
It cited reduced liquidity in the bond markets caused by the COVID-19 pandemic as reason for closure of these MF schemes.
What is Mutual Fund?
It is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds and other assets.
Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce income for the fund’s investors.
Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 25th April 2020
