Page 16 - Banking Finance June 2021

MUTUAL FUND

Mutual Fund

News

Gold EFTs drops 57% in Franklin Templeton disagree with the Hon'ble Securities Appellate
Tribunal
net flow with findings in Sebi order
"At Franklin Templeton, we place
Gold ETFs witnessed a 57 per cent With respect "We continue to be very
decline in net inflow to Rs 288 crore in optimistic on the long-term prospects great emphasis on compliance, and
have policies in place to cover a variety
May compared to the preceding of the chemical industry in India," as it of matters consistent with applicable
month, as investors diverted money becomes an important player in the
into equity markets. global supply chain, said Samir Rachh, regulations and global best practices.
who helps manage the nearly $2 billion We believe the company and
Despite the drop in inflow, the assets
Nippon India Small Cap Fund, the best employees have acted in compliance
under management (AUM) of gold
performer with a 42% return year-to- with regulations and in the best
ETFs rose by over 6 per cent to Rs
date. interest of unitholders in discharging
16,625 crore at May-end, against Rs their responsibilities. Based on our
15,629 crore at April-end, data with The biggest holding in Rachh's fund is initial review of the order, we are
Association of Mutual Funds in India Deepak Nitrite Ltd., a maker of phenol considering all options with regard to
(Amfi) showed. and acetone used in numerous
applications including mouthwash and next steps which may include filing an
According to the data, a net sum of Rs nail-polish remover. He initiated that appeal before the Hon'ble Securities
288 crore was pumped into gold-linked
position in 2017 and increased it in Appellate Tribunal (SAT)," the Franklin
exchange-traded funds (ETFs) last 2019. spokesperson said.
month, lower than Rs 680 crore in
April. Shares of the firm based in Gujarat "As stated previously, the decision to
have risen 88% so far this year, taking wind up the schemes was a result of
Investors had put in Rs 662 crore in their surge over the last five years to the severe market dislocation and
such funds in March, Rs 491 crore in nearly 2,000%. Its revenue has more illiquidity caused by the COVID-19
February and Rs 625 crore in January. than tripled in the period to 43.6 billion pandemic. The difficult decision to
"The lower quantum of net inflow in rupees ($595 million) for the fiscal year wind up these schemes was taken after
May could be attributed to equity ended March. due consideration of available options
markets doing well and investors Order by Sebi penalising the top to avoid distressed sales of portfolio
diverting a relatively larger portion of management in the Franklin Templeton holdings to meet heightened
their investments there," said case, the fund house has said that the redemptions and with the sole
Himanshu Srivastava, Associate 'disagree' with the findings in the SEBI objective of preserving value for
Director Manager Research at order. Franklin spokesperson said that unitholders," the Franklin spokesperson
Morningstar India. the fund house intends to file an appeal said.

16 | 2021 | JUNE | BANKING FINANCE