Stung by the Amtek Auto episode, Corporate India is taking additional precautions while investing in debt schemes of mutual funds. Investors are now looking at the net worth and profitability of a fund house and digging deeper into the credit profile of individual schemes before making an investment decision.
"Besides performance, investors in fixed income schemes are now looking at the net worth of the AMC, its profitability, the scheme's size and its liability profile," said Himanshu Vyapak, deputy CEO, Reliance AMC.
According to the official of a large corporate house, the firm first selects the AMC by looking at the AUM, net worth, long-term profitability and the quantum of promoter investment. It then selects the scheme by assessing the credit portfolio. "Corporates are now making it a point to interact directly with the fund managers, especially for investments in short-term bond funds and duration products. Also, while the overseas AUM of foreign fund houses was considered a comfort factor earlier, that's no longer the case now," said the official, adding that the firm invests in fund houses with a minimum net worth of Rs 100 crore.
