Over the last few months, there have been multiple instances of investors getting concerned about the debt mutual fund schemes in their portfolios. These concerns have emerged across categories of debt schemes. For example, some Fixed Maturity Plans (FMPs) that most investors assumed were quasi fixed deposits and more tax efficient delayed payments for a portion of their monies, or rolled over the FMP. Some of the open-ended schemes across debt fund categories were also impacted, as investors who were chasing the highest yields, were suddenly exposed to the credit risks in the portfolio of certain corporates unable to fulfil their promised interest or principal repayments, and thus mark downs in NAVs of the schemes as a result.
Nine big financial changes that you must watch out for in October
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