There are six such FoFs that saw sharp declines (Exhibit 4) on account of their holding of those 6 Franklin debt schemes which are being wound up. On April 24, 2020, NAV of Franklin India Multi-Asset Solution Fund fell by 22.5% while NAV of Franklin India Dynamic Asset Allocation Fund fell by 16.6% as they have allocations of 50% and 46% respectively to Franklin Short Term Income Plan, one of those unlucky 6 debt schemes as of March 31, 2020.
Franklin Templeton MF also has four other FoFs which allocate assets between equity and debt as per the customer’s age. They are Franklin India Life Stage Fund of Funds 20s, 30s, 40s, and 50s. They have exposure to the Franklin India Dynamic Accrual Fund (12.5%, 29.0%, 38.1%, 52.2%, respectively), one of the 6 schemes being wound down.
The four life stage schemes were down 6.6%,13.5%, 17.8%, and 25.2%, respectively. Although asset allocation is towards debt as well as equity, a large cut in NAVs have come due to markdowns in Franklin India Dynamic Accrual Fund.