Debt fund investors don’t need to panic if they suffer interim losses during to rating downgrades of companies in their debt mutual fund schemes. Experts say that as long as the exposure of the fund to such downgraded paper is limited to five-seven per cent, there should be no reason to get too worried. “Most think that debt funds are risk-free. If they give you better returns than a bank fixed deposit, they have to take more risk,” says Kunal Bajaj, founder and CEO at Clearfunds.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- 26 years of website archives.
- Preferential invites to Business Standard events.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Wed, May 31 2017. 23:36 IST