Ultra-Short-Term Debt Funds Are Deceptively Risky

The suspension of 6 debt fund schemes by Franklin Templeton AMC earlier this year left a lot of investors in shock. Particularly surprising inclusions in the list of suspended schemes were Franklin’s Ultra-Short Term Bond Fund and Low Duration Fund. Even before the suspension of schemes happened, many investors were starting to get wary of … [Read more…]

Quasi-Sovereign Issuers Aren’t Zero-risk

There is a class of issuers in Indian debt markets that are treated as being very safe in terms of credit risk – namely the quasi-sovereign companies. Generally, these include the so-called Public Sector Undertakings (PSUs) and their subsidiaries. There is in fact a whole category of debt mutual funds. They are ‘Banking and PSU … [Read more…]