 "Even though the equity market was opened up for foreign investors immediately after the early 1990s, the norms for foreign investment in debt were released in 1995 and in 1997, Rs 29 crore trickled in")
Corporate India has stepped up due diligence of its mutual fund investments and is pressing fund houses to tweak their portfolios to include more AAA-rated companies and sovereign public sector undertakings, even if it means sacrificing returns.
Institutional investors had gravitated towards bigger fund houses that were perceived as safer after the IL&FS crisis. Though this helped to some extent, the larger fund houses also took a hit on net asset values of some of their schemes after a few more credit episodes came to the fore.
What’s more, fund houses also passed on the losses to investors, making it clear that
