Troubles in the debt market jolted mutual fund investors when Kotak Mahindra Asset Management Co. Ltd deferred part of redemptions from one of its fixed maturity plans (FMP) as two Essel Group companies in which the FMP had invested, had not repaid in full. Dhirendra Kumar, CEO, Value Research, in an interview with ETNOW, said that in the worst case scenario, there will be a gradual sale of the collateral and investors will end up with 6-9% returns.
