There was the perception that debt funds were free of risk. The last six months have shown that they can be as risky as investing in equities—due to the liquidity crisis at non-bank lenders spurred by IL&FS group's defaults.
Amol Joshi, founder, Plan Rupee Investment Services, and Amit Bivalkar, director of Sapient Wealth Advisors, talk about the risks associated with debt funds in BloombergQuint's weekly series The Mutual Fund Show.
Advisors suggest investors must be wary of funds with higher yield to maturity and concentrated debt portfolio, besides urging them to read fact sheets before investing in any fund.
To know more, watch the full conversation here:
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