BS Fund Manager: Can mutual funds win back the confidence of investors?

A Bengaluru-based investor decides to retire early at the age of 53 years. He decides to invest a part of his retirement kitty in a low-duration fund to earn a percentage point more than the bank fixed deposit (FD). On June 4, he gets a rude shock. The fund’s net asset value (NAV) erodes 6 per cent in a single day, which is nearly equal to the annual return delivered by the category in the past one year. According to mutual fund (MF) advisors, investors who have gone through such shocks because of some of the recent credit events are