Defaults left debt investors in the lurch in 20183 min read . Updated: 26 Dec 2018, 03:47 PM IST
In 2018, debt funds as a category saw negative net inflows to the tune of 1.63 trillion, out of which 0.70 trillion went out in September and October 2018, the two months most affected by the NBFC crisis
If 2018 was decisively the year of systematic investment plans in equity funds, it was definitely not the year of debt funds. To begin with, the year started with volatile yields on benchmark 10-year government securities (G-secs), and for most of the year, market-wide yields kept rising.This contributed to dismal returns for debt funds. On the shorter end as well, liquid and ultra short-term fund returns came down to levels of 5.5-6% annualised return from around 8% in 2016.
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