Have you invested in a ‘safe’ debt mutual fund?

Investors in debt mutual funds in India have seen ugly surprises in last couple of months. While Taurus Mutual Fund’s investors in debt funds saw negative returns due to a rating downgrade of a paper, investors in many other debt funds saw negative returns due to sharp spike in interest rates in last one month. In both situations, it was the investor who faced the brunt. “Bond funds are exposed to credit risk and interest rate risks. Ignoring these two risks and merely running after returns will make one see such shocks,” says Abhinav Angirish, founder of investonline.in, a Mumbai based mutual fund distributor.

Read more at: http://www.moneycontrol.com/news/mutual-funds/have-you-investeda-%E2%80%98safe%E2%80%99-debt-mutual-fund_8591281.html?utm_source=ref_article

Investors in debt mutual funds in India have seen ugly surprises in last couple of months. While Taurus Mutual Fund’s investors in debt funds saw negative returns due to a rating downgrade of a paper, investors in many other debt funds saw negative returns due to sharp spike in interest rates in last one month. In both situations, it was the investor who faced the brunt. “Bond funds are exposed to credit risk and interest rate risks. Ignoring these two risks and merely running after returns will make one see such shocks,” says Abhinav Angirish, founder of investonline.in, a Mumbai based mutual fund distributor.

Read more at: http://www.moneycontrol.com/news/mutual-funds/have-you-investeda-%E2%80%98safe%E2%80%99-debt-mutual-fund_8591281.html?utm_source=ref_article