In the past five years, retail (small) investors have found a lot of solace in debt funds. After all, the returns have been better than even large-cap equity funds. The category average return in large-cap equity funds has been 7.38 per cent per year, whereas the category average return of all debt funds have been between 8.63 per cent and 9.41 per cent. Even in the past year, due to the huge volatility in the stock markets, debt funds have outperformed almost every category of equity schemes. But, Amtek Auto and, more recently, Jindal Power and Steel’s (JSPL) non-payment to asset management companies caused a lot of heartburn to investors. Investors in leading fund houses like Franklin Templeton, ICICI Prudential and JPMorgan (now sold to Edelweiss) have had to take haircuts on these papers.
Small-cap mutual funds' assets soar 83% to Rs 2.43 lakh crore in FY24 on retail investor boom
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