About five months ago, the founders of Agile Connects, an Internet of Things startup, put the entire corpus they had raised recently for business expansion plans into the Franklin Templeton Ultra Short Bond Fund. But on April 23, Franklin Templeton announced a closure of the fund along with five others on account of liquidity issues in the debt papers they were holding; Agile has been left with no option but to wait. The company, which thought the funds were safe and liquid, finds itself in a hard spot as it has reserves that will only last a couple of months.
“If the money is stuck for the next three years, it impacts our planning ability. Right now we have raised some invoices with our clients to pay salaries and other overheads, but if that money doesn’t come we are looking at a challenging time ahead even to pay salaries,” says Arvind Khungar, chief strategy officer at Agile Connects.
As investors continue to grapple with the effects of the pandemic, and the financial crisis and volatile markets accompanying it, it’s a wake-up call as good as any to ensure measured and diversified asset allocation, and relook portfolios.
After a massive outflow of ₹19,239 crore in April from credit risk funds, the panic seems to have abated for now; the outflow slowed to ₹5,173 crore in May, according to the Association of Mutual Funds in India (Amfi). [Credit-risk funds typically invest in lower-rated securities (below AA-) and gained in popularity because of their potential for double-digit yields]. The data also shows that investors have moved to categories with low credit risk, allocating more to banking and public sector debt, gilt and liquid funds. Flows into debt mutual funds rose to ₹63,665 crore in May from ₹43,431crore in April.
Denne historien er fra July 3,2020-utgaven av Forbes India.
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Denne historien er fra July 3,2020-utgaven av Forbes India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
