Most financial advisors say that they will stay away from credit funds and recommend only short-term funds to their clients due to the series of credit events in debt markets.
‘Considering the recent events in debt markets, how would you position debt funds?’ asked a poll run on Cafemutual.com
Close to 4,400 IFAs participated in the opinion poll. Of these, 59% or 2464 IFAs say that they will recommend only short-term funds such as overnight funds, liquid funds, ultra-short and short-term funds.
However, 1198 IFAs or 28% of the total respondents still say that they will continue to recommend credit funds as their valuations have become attractive.
Just 544 or 13% distributors say that they will stay away from all debt fund categories due to uncertainty.
Here is a snapshot of the opinion poll result.
Considering the recent events in debt markets, how would you position debt funds?
- I will stay away from all debt fund categories: 544 votes, 13%
- I will only recommend short-term funds: 2464 votes, 59%
- I will continue to recommend credit funds as valuations have become attractive: 1198 votes, 28%
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