Franklin Templeton mutual fund may take over 5 years to return some fund to customers

Franklin Templeton’s India investors may have to wait over 5 years to fully recoup their money, the asset manager said in an email to investors.

The timing could wind up being sooner, as any sale of the underlying assets in the frozen funds in the secondary market and prepayments or accelerated payments made by issuers of debt in the funds would quicken the payout, according to the documents.

The development is the latest turn after the company shut six debt schemes last month in the country’s biggest-ever fund freeze, which triggered shock waves in local credit markets.

It may take more than five years for the company to return the entire amount invested in four of the funds, according to the documents. Investments in the two remaining funds may be returned within five years, they showed.

The fund manager had previously said it is seeking investor approval to liquidate the six debt schemes.