Consider well-diversified credit risk funds with limited exposure

Investors should observe a few precautions, despite the likely higher returns

Topics
credit risk funds | Franklin Templeton | Mutual Funds

Sarbajeet K Sen 

Investors exited from credit risk funds in large numbers after Franklin Templeton Mutual Fund announced the winding up of six of its debt schemes in April. They moved to safer categories like banking and PSU and corporate bond funds. However, with the economy recovering gradually, experts say investors can consider credit risk funds again.

What is on offer? Credit risk funds invest in bonds with AA and below ratings. These bonds are higher risk compared to their AAA-rated counterparts and, hence, offer higher interest. These funds run a diversified portfolio of lower-rated ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, December 19 2020. 06:08 IST
RECOMMENDED FOR YOU
.