Stuck In Quicksand
Debt funds are in the line of fire for missing the danger signals and eventually falling prey to defaulting securities.
Debt funds are fast losing sheen as they draw fire for falling prey to defaulting securities. A host of negative incidents such as fixed maturity plans (FMPs) not paying full maturity amounts, and erosion of debt funds' NAVs have put a question mark on their stability. This also makes them a weak link in the chain.
The past 8 9 months have been particularly brutal for the debt mutual fund (MF) schemes, which manage Rs 11.63 lakh crore, due to a series of defaults in the Indian bond market. This is cause for serious concern as, according to Association of Mutual
