Comments
Franklin Templeton India AMC wound up six of its debt schemes that had a significant exposure to relatively lower rated bonds, effective from April 23, 2020. It was mainly due to the unprecedented levels of redemptions in these schemes following the COVID-19 outbreak and lockdown. This move rattled the investors’ fraternity.
Against this backdrop, we analyzed the portfolio of all debt mutual funds (open-ended and close-ended including FMPs) to understand how their exposure were into the various rated debt instruments. For this, we bifurcated the ratings of the corporate papers that the debt schemes held into ‘AAA/AA+/A1+’ and ‘AA & Below’ (as defined by the SEBI).
MFs have been playing safe (Rating break-up)
Schemes with high exposure to ‘AA & Below’
Rating break-up in Credit risk funds category
Schemes with high concentration in a single corporate paper in the portfolio
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.