HSBC and Franklin Templeton Mutual Funds Restrict Fresh Investments on These Funds

Starting April 9, 2025, HSBC Mutual Fund and Franklin Templeton Mutual Fund have announced restrictions on fresh inflows in specific debt-oriented schemes. The restrictions apply to new investments, switches, and registration of systematic plans.

HSBC Mutual Fund: Two Schemes Affected

HSBC Mutual Fund has restricted fresh subscriptions in the following schemes:

• HSBC Credit Risk Fund
• HSBC Low Duration Fund

The restrictions cover all types of new inflows, including:

• Lumpsum investments
• Switch-ins from other schemes
• New registrations of Systematic Investment Plans (SIPs)
• New registrations of Systematic Transfer Plans (STPs)

The restriction will be effective from April 9, 2025, and will remain in place until further notice. Existing SIPs and STPs already registered before the cut-off date will continue as scheduled. Redemptions are not impacted by this restriction.

Franklin Templeton Mutual Fund: Corporate Debt Fund Suspended

Franklin Templeton Mutual Fund has suspended new subscriptions in the Franklin India Corporate Debt Fund, also effective April 9, 2025. The suspension includes:

• Lumpsum investments
• Switch-ins
• New SIP registrations
• New STP registrations

This restriction, like HSBC’s, will continue until further notice. Existing investment instructions set up prior to the effective date will continue without disruption.

Applicable Across All Platforms

The restrictions by both fund houses are applicable across all distribution platforms and channels. Investors will not be able to initiate any new inflow transactions into the mentioned schemes after the effective date.

Conclusion

From April 9, 2025, new investments and systematic plan registrations into HSBC’s Credit Risk and Low Duration Funds, as well as Franklin Templeton’s India Corporate Debt Fund, will not be accepted. These restrictions will continue until further updates are provided by the respective fund houses.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.