The mutual fund industry may be staring at an exodus of top talent amid the debt trap that has been plaguing it since the Infrastructure Leasing and Financial Services' (IL&FS) crisis broke out in September 2018.
Debt funds have been in flux since September last year after IL&FS and its group companies defaulted on their commercial papers, triggering a liquidity crunch in the money markets. Defaults by many other corporate groups, including DHFL, Essel and Reliance ADAG, further soured sentiment for debt funds, prompting investors to pull out nearly Rs 1.5 lakh crore last year from these funds.