An Association of Mutual Funds in India (Amfi) press release, issued during the chaos following Franklin Templeton Mutual Fund’s unprecedented winding up of six debt funds on 23 April gave the game away. “The action taken by the particular AMC is limited to the six specific credit risk fixed-income schemes," it said.
Within hours, Amfi revised the release replacing “credit risk" with “income-oriented". The name mattered because in October 2017, the Securities and Exchange Board of India (Sebi) had laid down a classification system for mutual funds.
In it, the regulator had meant to put credit risk funds in a category called exactly that: credit risk (such funds were earlier called credit opportunities funds, in some cases).