Investors Lost of Rs. 28000 Crs in Franklin Templeton Mutual Fund. How to recover it?

24^th April 2020

Investors Lost of Rs. 28000 Crs in Franklin Templeton Mutual Fund. How to recover it?

Dear Fellow Travellers,

Greetings from Hitesh! We are dealing with Corona / Crude and now comes the winding down by Franklin Templeton Mutual Fund of 6 Debt Funds with high Credit risk. It seems “C” is a common problem creating phenomenon nowadays.

Every coin has two sides. Let us see the first side first.

How investors are taken for a ride?

They are told the following things over and over again.

1.  The market is complicated/dynamic and the individual investor is not capable to think about them all.

2.  Enjoy your time with your family – we will earn for you and send monthly cheques in your account.

3.  Expert fund manager coupled with the best research team is capable to find out the opportunities in a better way and sell at the right time.

4.  You can start with just Rs.500 per month and there is no limit.

5.  Our track record is very good and we have generated “X%” over a “Y” period. You can also earn the same if you invest with us.

6.  The marketing is carried out by enrolling the personalities like DHONI and FILM Stars. If their performance is so good, why they are paying CRORES to these guys?

How Investors also want to fall into the TRAP?

1.  He wants to earn money without doing anything.

2.  He does not want to invest time in managing his money.

3.  He has no skill sets and education (most guys) in the field of investments.

4.  He wants to make fast money and that too regular and at a higher rate. CREDIT Risk fund is such a fund.

5.  He believes that Fund Manager is SUPERMAN and he can generate ALPHA when overall economic conditions are not supportive.

If you join the factors in part one and part two – we got a perfect MATCH of a SUCKER and a person allowing to get SUCKED. In good times this relation goes on but as the Buffett says – “Only when the tide goes out do you discover who's been swimming naked”.

What are my suggestions to the investors?

Let me start with a Zen Story: -

Once a wealthy man wanted to tease his old Servant. So, he asked– “what do you think – Lovemaking is a Pleasurable activity or a Laborious activity?” The servant replied – “If it would have been Laborious activity, I am sure you would have asked me to do.”

If earning money in your job/business or profession gives you pleasure, how come investing your savings is a laborious job for you? Say you got the pleasure to earn Rs.1 lakh per month and you have a saving of Rs.20000. Why do you give Rs.20000 a step-motherly treatment? This happens when deep down you know that you don’t deserve this money. When you know you don’t deserve this money – you invest without KNOWLEDGE and SKILL SETS.

How do you feel now when you lost money by investing in Mutual Funds? (those who invested in FT schemes).  

I am sure you all must be feeling CHEATED. Top it all, you will feel frustrated that you can’t do anything to those fund managers for your losses. You may blame/curse your advisor/fund manager or your luck. But that is not going to change your situation. When situations improve – you will again invest without knowledge and skillsets.

What is a lifetime solution for this problem?

You learn the fine art of investments.  You manage your investments or set up an office in case you have a big fund. If you have invested 3 years in simple B. Com, you can surely invest another 3 years to learn to manage your LIFETIME EARNINGS. Whatever may be your age – learn and manage your investments on your own.

What is the guarantee that if I learn investments skill, I will not have losses?

There are two aspects of the answer.

1.  You will not feel cheated and frustrated after losses if at all you have losses. Say a couple wants a kid and they are trying for it. It may happen that wife does not become pregnant in a month or 12 months, but they got the pleasure of trying for it, am I right? Getting pleasure is the best reward, according to me.

2.  With 29 years of market experience I can honestly say – if you have learned the investments in a proper perspective, you will not suffer losses come what may.

So, if you are a short term guy, answer 1 is applicable to you. If you are a really long-term guy, answer 2 is very assuring.

What NEXT?

It’s your life. Your money. If you are really serious about learning to invest – be with me for 3 years. We teach all kinds of investment techniques with practical experiences.  

Have a GREAT WEEKEND.

Follow me on Twitter @hiteshmparikh / WhatsApp – +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh