Last week, India’s mutual fund industry witnessed an extraordinary U-turn. Sundaram Asset Management Co., which had announced the creation of segregated portfolios (through side-pocketing) in its schemes exposed to the securities of the beleaguered DHFL group of companies on 16 August, reversed its decision five days later on 21 August. Four schemes of Sundaram MF—Sundaram Low Duration, Sundaram Short Term Debt, Sundaram Short Term Credit Risk and Sundaram Debt Hybrid—were exposed to DHFL securities. On 16 August, the asset management company (AMC) wrote off its entire exposure to the stressed securities.
Nine big financial changes that you must watch out for in October
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