Page 3 - Debt Mfs
Short-term volatility is a friend of the long-term investor: Sundaram MF MD
India is going to be the next China. It will be a foreign flow magnet, says Sundaram Mutual Funds MD Sunil Subramaniam
 "Short-term volatility is a friend of the long-term investor: Sundaram MF MD")
Debt mutual funds cut exposure to debentures issued by PSUs
Debt mutual funds (MFs), which account for bulk of the industry assets, have cut their exposure to debentures issued by public sector undertakings (PSUs) by nearly 200 basis points (bps) since April.The move comes amid deteriorating financial health of some of the state-owned institutions particularly banks. At the end of March, exposure to PSU bonds and debt issuances stood at Rs 1.33 lakh crore, or 11.74 per cent of the total debt asset under management (AUM). By July, fund managers had pruned it to Rs 1.26 lakh crore, 9.87 per cent of AUM.On the other hand, debt funds added more government securities (g-secs) to their portfolios.Since April, fund managers have stepped up buying of government papers and increased allocations to Rs 1.33 lakh crore , or 10.45 per cent from Rs 1.13 lakh crore, or 8.92 per cent in April."Banks were seen gravitating towards the g-secs during demonetisation. Fund managers may have felt that there is scope for further rally in g-secs, prompting them to ..
 "Debt mutual funds cut exposure to debentures issued by PSUs")
