In general, mutual funds have been a big lender to the debt market. We have seen most NBFCs are getting funded via the mutual fund route. Is there reluctance among the MF community, are they analysing and over analysing the mutual fund exposure to NBFCs?
First, if you look at the break-up of the mutual fund industry of the 23-odd lakh crores, 50 per cent of that is in debt mutual funds. Intuitively, that money has to go into corporate lending in the form of NCD ..
