India's funds body urges investor calm after Templeton shuts fundsIndia's funds body urges investor calm after Templeton shuts funds
FILE PHOTO: A cashier checks Indian rupee notes inside a room at a fuel station in Ahmedabad

MUMBAI (Reuters) – The Association of Mutual Funds in India on Friday urged investors to remain calm after global fund manager Franklin Templeton shut six of its debt funds in India, citing market dislocation and a lack of liquidity amid the coronavirus pandemic.

Franklin Templeton Mutual Fund, one of India’s most prominent mutual fund houses within the fixed income space, said late on Thursday it would wind up six credit funds with a large exposure to higher-yielding, lower-rated credit securities.

AMFI said the debt portfolios of most mutual funds had “superior credit quality” and were “fairly liquid” and called on investors to “not get side-tracked by an isolated event”.

“There is no need for (investors) to panic and redeem their investments,” AMFI chairman Nilesh Shah said in a statement. “The industry continues to remain robust.”

(Reporting by Abhirup Roy; Editing by Kevin Liffey)