Investors are now getting worried about the risk that the various bond funds and other income funds have following the J P Morgan case and this is reflected in the data wherein in a single month they have pulled out more than Rs. 26,000 crore from such funds in September. The question for other investors who might not have done much till now is whether they should follow the herd and ensure that safety has the first priority or should they adopt a contrarian approach and see how the situation turns out. This requires a careful consideration and hence is something that needs the attention of every debt fund investor. Here are some additional details in this area.
Who is responsible for low mutual fund penetration in India?
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