Stay invested in debt plans, wait for clarity: Fund houses to clients

Sebi circular on perpetual bonds has sparked redemption concerns

The proposed rule on treating the maturity period of perpetual bonds as 100 years has put investors in a bind. Fearing losses, some investors are said to be considering redeeming their mutual fund units before Sebi’s circular on perpetual bonds takes effect on April 1.
 
Fund managers, on the other hand, are advising investors — especially high net-worth individuals (HNIs) — to wait for more clarity from the regulator and not redeem their investments in haste.
 
“We recommend investors not to just pull out their money from debt schemes only because of the valuation norms. After the letter