Debt Mutual Funds: Embracing an Altering Landscape

Every year, the mutual fund industry (MF) spends crore in advertisement business to make you understand the benefits of diversification, and how your money gets handled by a professional management. Although, it does not guarantee you that all your risk will disappear, or your mutual fund units would never slip below its net asset value (NAV) or for that matter any credit crisis will not take away your hard-earned investment money. In March, 2019, the share of retail investors in debt and debt-oriented products constituted 37 per cent of the total asset under management (AUM). The percentage is big enough to understand that there is a reason why investors have become more cautious and apprehensive about their investment in debt funds in the recent light of the unfolding  of events. Since the Infrastructure Leasing & Financial Services (IL&FS) crisis in September 2018, which...