Investors in debt schemes of mutual funds, especially those that bet on low-quality paper, have been a disappointed lot. Following a slew of defaults by companies and credit rating downgrades returns from various debt schemes have eroded by as much as 72 per cent in a matter of weeks. Most debt funds return 6-8 per cent annually.
At least 10 funds have lost more than 10 per cent over the last one year. Many HNIs and retail investors were attracted to credit risk funds —which bet on low ..
