Simply Save podcast | Can debt funds really assess credit risk?

Debt mutual funds have gained a bit of notoriety thanks to the credit risk blow-ups that we’ve seen in the past year and half. Can debt funds really assess credit risks, when so many banks have faltered and NPA levels in some of them have been quite high? A few weeks ago, a large fund house wound up six of its debt funds because the fund management had taken excessive risks across many of its debt funds. Investors’ faith in debt funds has been badly shaken up. We spoke to Sujoy Das, head of fixed income at Invesco India mutual fund who cleared some misconceptions about debt funds, took us through how many fund houses usually assess credit, and explained us how to set our expectations right and keep our risk levels in check.