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.
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First Published: Wed, May 31 2017. 23:36 IST
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