Hi
I invested my emergency fund and lumpsum amount 4years back in Franklin low duration & franklin ultra short duration fund. But suddenly my returns turns negative due to vodafone idea issue.
Kindly advice what to do now? Is it possible now to redeem, switch or hold?. If redeem where can to invest?
2 Answers
Hi,
Suggest you to stick to Bank FD, Liquid funds (that invest primariliy in Sovereign bonds, ex : Parag Liquid or Quantum liquid) or overnight liquid funds for building Emergency Fund.
Safety of capital is of utmost importance incase of Emergency Fund.
Debt mutual funds can provide you better tax-efficient returns as compared to bank fixed deposits. However, this excess return comes with risk attached. Appreciate those risks.
So, you may kindly make all your future savings/contributions to above listed products and as of now stay invested in Franklin debt funds.
You may go through this wonderful article written by my fellow blogger -
Loss in Franklin Debt Mutual Funds: What should you do?
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