Credit Crossroads That Shook India

Over the last year or so, there is a distinct credit crisis looming large over the Indian investment landscape. In September 2018, the Infrastructure Leasing and Financial Services (IL&FS) fiasco shook the sector. The banking and the NBFC sectors are still experiencing the aftershocks.  In the aftermath of IL&FS fiasco, debt mutual funds, credit risk funds, fixed maturity plans (FMP), investors, NBFCs, banks and other financial institutions have begun to feel the heat. Moreover, mutual funds investors are staring at a lot of insecurity in debt mutual funds schemes, primarily in the credit risk fund category. Due to this, investors have started to panic while many of them are mulling options of switching to safer investment bets. Major mutual funds that have exposure in IL&FS securities are LIC MF, DSP Credit Risk Fund, Aditya Birla Sun Life, Tata Capital, Principal Cash...