The year 2017 has not started well for debt mutual funds. RBI in its last monetary policy review shocked the markets by changing its stance from accommodative to neutral. Interest rates shot up with even some short-term funds, which had taken a duration call, getting singed. This was followed by a drastic markdown in the NAV of some debt schemes by a private sector mutual fund on account of a rating downgrade.The industry had taken hits earlier with downgrades in auto steel papers.
