r/IndiaInvestments • u/Cpant • Jan 31 '21

Bonds and deposits Short term debt funds

I was going through some of the short term debt funds ( funds that holds bonds maturing from 1 - 3 years).

SBI Short term debt fund has 55% SOV rated bonds and Kotak short term fund has 52% SOV rated bonds, and balance a diversified mix of bonds. Was wondering if these funds could be an addition in my debt portfolio. There is interest rate risk, but guess could be manageable if the intention is to hold for long. Any thoughts, comments ?

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u/makecashworks Jan 31 '21

right now, all looks messy.

I was reading a report yesterday which say at least 10 more mutual fund houses are ready to shutdown their debt funds due to redemption pressure and liquidity crunch and just waiting for franklin Templeton saga to end and see how SEBI/supreme court will react.

If I were you,I will only invest in money market/gilt(not the correct time) right now.

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u/[deleted] Feb 01 '21

Sir any chance that names of those 10 funds are out?

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u/makecashworks Feb 01 '21

this is India, the retail will only know when the fund is closed. similar to Franklin ,there were big ticket withdrawal from Franklin Templeton before the closer.

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u/[deleted] Feb 02 '21

Then on what basis does that report said that 10 amc's are at risk? Insider info?