Bubble building up in debt MF: Ambit

Bond and liquid funds received more inflows in FY17 than in FY15 and FY16 combined

Anup Roy  |  Mumbai 

Bonds issued by non-banking finance companies (NBFCs), being lapped up by the mutual fund (MF) industry, could be pushing the investors and the financial system to a risky situation where capital loss could become a reality, a report by Ambit Capital has warned. Terming the phenomenon as “bubble”, Ambit Capital chief executive officer Saurabh Mukherjea said in the note that in the past three years, about Rs 3.7 lakh crore has entered the bond and liquid MFs, leading to a steady drop in bond rates. Compared to this, equity MFs have received inflows of about Rs 2.3 lakh crore ...

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Bubble building up in debt MF: Ambit

Bond and liquid funds received more inflows in FY17 than in FY15 and FY16 combined

Bond and liquid funds received more inflows in FY17 than in FY15 and FY16 combined Bonds issued by non-banking finance companies (NBFCs), being lapped up by the mutual fund (MF) industry, could be pushing the investors and the financial system to a risky situation where capital loss could become a reality, a report by Ambit Capital has warned. Terming the phenomenon as “bubble”, Ambit Capital chief executive officer Saurabh Mukherjea said in the note that in the past three years, about Rs 3.7 lakh crore has entered the bond and liquid MFs, leading to a steady drop in bond rates. Compared to this, equity MFs have received inflows of about Rs 2.3 lakh crore ... image
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