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The article “Mutual Funds: A Brewing Scam” (Business Line, November 5), 2008 is factually incorrect and misleading.

Mutual funds invest only in investment grade assets. 90 per cent of the assets of the debt schemes have highest and very high ratings given by rating agencies. Mutual funds are strictly regulated and all investments are made in terms of the offer documents and they are subject to market risks.

In the current difficult market situation, mutual funds have been able to honour their commitments in terms of redemption.

The Reserve Bank of India has given a special repo facility which has been well utilised by commercial banks to provide adequate credit facility to the mutual funds.

The overall situation is improving and we all expect normalcy to return.

A. P. Kurian Chairman Association of Mutual Funds in India Mumbai

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