Financial planners are advising debt mutual fund investors to stick to liquid funds - a safe bet in uncertain market conditions. This is because bond funds had a volatile year due to a downgrade in IL&FS bonds, rising yields and a depreciating rupee against the US dollar.
In the last one month, a downgrade in bonds of IL&FS from ‘AAA’ rating to ‘D’, led some mutual fund companies to mark down these bonds by 25-50% in their portfolio, leading to losses for investors. Over the las ..
