These borrowings included long-term bank facilities, a fixed deposit programme, perpetual debt, subordinated debt and non-convertible debentures (NCDs). Some industry leaders have begun to advocate avoidance of risky credit categories of debt funds. Some experts say that the retail investors should avoid all but the safest debt fund categories. As fund managers have indicated, DHFL has so far been servicing their debt and there has been no default. For investors in all categories of debt funds, this is the time to evaluate the risks in the portfolio of the schemes.

Source: Mint May 20, 2019 16:07 UTC