The brokerage accrued in the six schemes under winding up was from April 24, 2020 to March 17, 2021. However, this extra money will be reflected in the regular plans of these schemes. Direct plans of mutual funds do not charge any commission from investors. In regular plans, unitholders are charged asset management fees and distributor commissions.
Franklin Templeton Mutual Fund has returned Rs 26,098.19 crore to unitholders amounting to 103.50% of the AUM as on April 23, 2020.
In a notice issued by Securities and Exchange Board of India, in June 2021, Franklin Templeton Mutual Fund was ordered to refund the management and advisory fees collected in the six shut schemes between June 4, 2018 and April 23, 2020.
Franklin Templeton had wound up six debt schemes: Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Short Term Income Fund, Franklin India Income Opportunities Fund, Franklin India Dynamic Accrual Fund, and Franklin India Credit Risk Fund, in April 2020.