The storm surrounding the fixed income market finally seems to be settling. While liquidity seems to have returned and the crisis in the nonbanking financial companies (NBFC) sector is more or less contained, there have been questions about the kind of securities that your debt fund money is parked in.
Lakshmi Iyer of Kotak Mutual Funds, Ashish Shanker of Motilal Oswal Private Wealth Management and Vidya Bala of Fundsindia.com help clear doubts and identify some of the debt funds that are worth looking at.
Lakshmi Iyer said though the last couple of months have been a huge roller coaster, despite that if you just look at the tracker and across the fixed income categories, right from liquid to duration categories, not a single category has given you a negative return on a one-year basis.
Ashish Shanker said that the last three months have been very stressful for a lot of clients, this is a stark reminder that if you don't stick to the basics of investing, you could run into accidents.
Vidya Bala said the storm hasn't entirely settled, people are a bit rattled by the risk emanating from both sides, that is from credit as well as duration.