Amit Bhosale explains the true nature of credit risks.
There is genuine risk aversion. MFs are staying away from below-AAA rated securities
Even when investing for more than five years, ultra short duration, low duration and money market funds are healthy options
The fund manager decided to follow a similar credit risk strategy across many debt fund categories
Investors, financial advisors and fund houses have much to learn from the debt fund fiasco of the past year
The category has funds with a solid track record. But given the volatile markets, interest rate movements and the recent credit events, prudent selection of schemes is important.
Schemes investing in top-grade instruments, ensuring adequate diversification and maintaining a high pedigree carry lower risk for investors
Experts advise investing in short and medium duration schemes where the fund manager also allocates to g-secs
You should look at the modified credit ratio in the light of events in the recent past.
Mandating market-linked valuation of securities, tighter lending norms against shares are positives; AMC bailout of schemes not addressed
Credit events usually happen when the economy does not do well. We are not out of the problem fully. More trouble cannot be ruled out, though most of it is behind us.
A diversified portfolio, large asset base important; debt market experts recommend mid-rung performers, suggest not to go by past returns
While choosing funds, you should opt for schemes that take low credit and liquidity risks.
Debt funds are not as easy to understand as bank fixed deposits. The good side is they offer you a chance of better tax-efficient returns. Ask questions to your advisor about what the fund does, where it invests, how much credit risk it takes.
If you want returns from debt funds, make sure you’re ready to take on the accompanying risk
According to data by Morningstar, a total of 10 fund houses had lent to 16 companies belonging to Essel Group
After giving the green signal to side-pocketing, SEBI has given the option to fund houses to segregate bad assets. But there are strict conditions to prevent misuse.
Investors should not blindly chase returns and ratings of the mutual fund schemes. It makes a lot of sense to understand risk associated with schemes before investing your hard earned money.
The company's arm, Suzlon Global Services, received a provisional credit rating of 'A-' and a stable outlook from ratings agency CARE.
Though guarantee is a sought after factor for many investors, it still makes not to go for it.
EarlySalary.com, India’s first Mobile App that gives instant cash, today announced the appointment of Vimal Saboo as the company's Chief ...
While mutual funds can help manage credit risk and reinvestment risks, investors must understand how individual mutual fund schemes function before committing their hard earned money
Taking exposure to low rated bonds mean high credit risk. Such bonds can impact the liquidity of the portfolio. Also in case of default, the permanent capital loss cannot be ruled out.
Investment grade bonds have been overshadowed by interest rate movements, currency fluctuations and eroding effect of inflation. Here are some tips for bond investors.