Troubled Dewan Housing Finance's (DHFL) Rs 1,150 crore missed payment on June 4 proved to be the debt market's worst fears coming true. What followed was a rating downgrade and markdowns across mutual funds holding DHFL debt.
While the company has now made this payment in the promised time frame, debt investors are still nursing losses. So, what is the way forward in the world of fixed income mutual funds? How much longer will this default storm rage? What should you do if you are in one of the affected funds?
Putting the spotlight on the state of fixed income market, Kaustubh Belapurkar of Morningstar India and Raghvendra Nath, MD of Ladderup Wealth Management answer some of these important questions.