Given the focus on safety and quality, the task of choosing money managers in the debt category was tougher than that for equity funds
Seven top executives discuss the road ahead for the fund industry, how they plan to restore investor confidence and woo millennials
After massive redemption, exposure to poor-quality, illiquid papers can rise to unacceptably high levels
The performance of a fund varies based on the performance of the underlying asset classes, says Ashwani Bhatia
However, SEBI does not specify the credit profile of the funds
Cracks in the money market that started with IL&FS Group's default last year widened in June after mortgage lender Dewan Housing Finance Ltd. delayed debt payments
Since the start of the year local companies have raised a record $12.9 billion via offshore bonds and $12.3 billion from loans, the highest in three years
These funds invest in papers having very long maturity, which tend to be most sensitive to rate changes
Losing investments is if companies default on their debt obligations
Liquidity improved, despite a challenging scenario, due to better portfolio quality. Barring few pockets where recovery was impacted due to debt waivers, overall delinquencies came down: Experts
While recent events have dented confidence, investors should not avoid debt funds altogether
Even if a fund is hit due to a default, investors still stand a chance to make better returns than in a bank fixed deposit over the long term
Remember there is an element of risk in almost every investment option. Take a call, depending on your risk appetite
Their annual returns are slightly over 8% and can be a good choice for risk-averse investors
Investors will need to exercise caution and be mindful of both interest rate and credit risks which could impact their portfolios
Short-term tactical considerations also suggest long trades in the financial sector
Yields of 10-year government papers have surged 115 basis points to 7.91% , from 6.76% a year ago
Experts say that those with the appropriate risk appetite and a horizon of at least two years may take a contrarian exposure
With RBI holding on to rates, investors should avoid longer duration funds for the near future
IDFs are investment vehicles for channelising investment to the sector