Should you demat and sell your Franklin India debt funds in the market?

The Securities Exchange Bord of India (SEBI) recently came up with a circular that requires AMCs to list schemes that are being wound up. This means the six Franklin India debt funds that are in the process of being closed down can now be listed in the stock exchanges.

  1. What does this listing provision mean for you?
  2. Will you be able to get back your money by selling in the market?
  3. What is the procedure to demat your units?
  4. Is it a good idea to demat your funds and sell them?
  5. What will be the impact for you if you do this?

These are some of the questions that we try to address in this video by Vidya Bala.

You should remember that there can be complexities in opening a broker account if you are with an offline IFA or distributor and are now moving to any direct plan broker. These are aspects you need to consider before you demat. 

In summary, you can opt for demat if you have a crying need for liquidity. There may be takers in the market hoping to benefit from buying units from you now and getting a larger sum when the repayment happens. So, when you sell your units be aware that there won’t be many takers and you may not get a price that is favourable to you. 

See the full video for details and subscribe to our YouTube channel here.

Earlier video on this topic:

More like this

4 thoughts on “Should you demat and sell your Franklin India debt funds in the market?”

  1. I like the way you write. This article really helped me as all the thing was explained in a detailed way. Thank you for sharing this information.

  2. Thank you, I am one of the affected parties having moved by MF and cash for sons education this year into this ultra short liquid fund! So my interest is more than academic. Thanks for clearly sharing summary at the end, which I am seeing in the last 2 weeks of my subscription. Keep it up!

Comments are closed.

Login to your account

Become a PrimeInvestor!

Get access to fresh stocks and mutual funds recommendations.