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Takeaways: Invest within your comfort zone. Don’t be greedy.
Well said Ashishji! FT AMC risk management team should work better.They have various types of debt funds based on duration required to park money.(short term to long term) Now in the Vodafone papers FT funds, invested between 4-5%. For long term investors who are investing in credit risk fund for a 3 year+ period fetching around 12% CAGR may bear the loss1-1.5%. But investor who comes for short term parking commitments in low duration & ultra short term funds with a 6m-1y period loss of 4-5% is not tolerable. Here mis-selling was not done by distributors.Risk management has not done the job (allocation) correctly. When the erosion is happening like this in debt funds, we are not able to retain the customers exiting totally from MF itself.
All the concerned queries very relevant for all IFAs selling these products in the retail space. At present I am of the view that short term debt funds are not for retail. When people invest in these the normal expectation is a lot less volatility and is always compared with the favorite FDs. Of equity yes volatility is the expected norm and it does come back in the mf structure but in debt is a whole lot complex and time consuming. We can lose the clients forever and yrs of trust built can go for a toss...Praying for the issue to be resolved at earliest and the debt fund structures suitably modified so that we do not have these problems in the future
Great Sir Your Learnings Always Helps us to Overcome Through the Tough Times
Thanks for your Guidance
Loss should recover from fund manager and his team
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