Spurred by fears of corporate defaults and a drop in issuance of certificate of deposits (CDs) by banks, debt mutual funds have raised their exposure to government securities (G-secs) by 30 per cent over the past year.
The exposure to G-secs has increased by Rs 94,215 crore, or 31 per cent, in one year to Rs 3 trillion at the end of August, data provided by markets regulator Securities and Exchange Board of India (Sebi) shows. Experts say several debt funds still prefer to invest in ‘liquid’ securities as they have seen several defaults and downgrades of debt papers ...
