 "Illustration by Binay Sinha")
Retail investors in credit-oriented schemes, who expected little volatility and steady returns from their investments, are now in an exit mode. This is on account of concerns over returns being hit due to write-downs of debt papers downgraded to ‘below-investment grade’ and mark-to-market losses after adverse ratings.
“Some of these schemes have had to take a significant markdown on their exposure to downgraded papers, thus triggering a fall in the net asset values (NAVs). Some credit risk funds don’t have exposure to just one single lower-rated paper but multiple ones,” said Vidya Bala, head of mutual fund (MF) research at FundsIndia.
“There
