MUMBAI : The closure of 6 debt schemes by Franklin Templeton India on Thursday has increased the worries about debt funds and if the investment in these schemes is safe in the view of liquidity concerns due to covid-19 pandemic.
Mint spoke to NS Venkatesh, Chief Executive, Association of Mutual Funds in India (AMFI) on whether the other income funds, credit risk funds are likely to face the heat of increased redemption pressures.
Edited excerpts. Is there a liquidity concern for debt funds, is the investment safe? Income oriented debt schemes of most mutual funds have superior credit quality as confirmed by ratings of independent credit rating agencies and continue to remain fairly liquid even in these challenging times.