 "Liquidity management tool: RBI may have to balance old norms with the new")
The Reserve Bank of India's financial stability report (FSR) has pointed at the risk of concentrated exposures in fixed maturity plans (FMPs) of mutual funds (MFs) in light of certain FMPs 'defaulting' on the date of their maturity.
As part of its analysis of 'risky' investment profiles of FMPs and open-ended debt schemes, the FSR said, "For FMPs, top-five holdings across schemes formed at least 40 per cent of the aggregate corporate debt portfolio, whereas the concentration of both top-five and top-three investments with respect to open-ended debt schemes were lower."
The report also pointed out that the
As part of its analysis of 'risky' investment profiles of FMPs and open-ended debt schemes, the FSR said, "For FMPs, top-five holdings across schemes formed at least 40 per cent of the aggregate corporate debt portfolio, whereas the concentration of both top-five and top-three investments with respect to open-ended debt schemes were lower."
The report also pointed out that the
