The last six months have been eventful for bond markets. Starting with the IL&FS default in September 2018, the industry saw series of rating downgrades, maturity date extension requested for some maturing FMPs and sharp drop in scheme NAVs (as steep as-50% in a day). In the aftermath of these events, many IFAs now consider debt as risky as equities.
To understand, how IFAs perceive debt investments, we ran an opinion poll on Cafemutual.
‘With debt funds facing multiple events in the last few months. Is debt as risky as equity?’ asked the poll.
Around 4,230 IFAs participated in the opinion poll featuring on our website. Of these, 38% or 1,596 IFAs feel that while debt investments have their risks, equity is still a riskier asset class.
However, nearly an equal number of IFAs that is 1,552 or 37% feel that debt is as risky as equity.
Only, 1,082 or 26% of the distributors feel that equities are more risky and this phase in debt markets is temporary.
Here is the snapshot of the opinion poll result.
With debt funds facing multiple events in the last few months. Is debt as risky as equity?
Yes: 1,596 votes, 37%
No, this phase is temporary: 1,082 votes, 26%
Debt has its risks but equities are more risky: 1,552 votes, 38%
