Recently, Sebi had proposed certain changes in debt mutual funds to reduce the risk inherent in them. Several measures have been suggested, which have the potential to make debt funds somewhat safer than they are today. The measures are good and cumulatively have the effect of making this space safer for the investor. Let us see what the proposals are and what could be their likely impact on debt funds.
Liquid funds henceforth need to keep 20 per cent of their assets in safer instruments ..
