In a possible re-run of the DHFL episode, large open-ended debt schemes of Aditya Birla Sun Life Asset Management Co. (ABSL AMC) have witnessed a sharp increase in their percentage exposure to the Essel Group paper, leaving investors exposed to large losses in case of a default. In case of DHFL Pramerica Mutual Fund, exposures of 7.5-8.5% to DHFL in mid-2018 exploded to 30-53% in May 2019 due to large outflows from the affected schemes as investors fled before the defaults happened and the fund house had to sell the more liquid part of the portfolio to meet the redemptions. As a result, the remaining investors in the schemes suffered a big hit when DHFL defaulted.
Nine big financial changes that you must watch out for in October
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