"We trust that you will avoid using harsh language and will refrain from making unsubstantiated allegations against individuals and firms. Your constructive feedback and opinions are very valuable to all of us in the industry. "
Sir can u pl share with me the top 5 AMcs who are manging their accrual scheme in the most efficient manner. I will be happy to receive a 4 liner mail from you as my 90% of debt biz is only in accrual funds. it will be good for me also if u can tell which ones to avoid
A very no-nonsense, mature talk by Mr. Bond.
Very honest perspective. I would completely agree...
Rival AMCs should refrain from sending messages on this topic. I have seen some trying to cash in on this and failing to realise that this will affect their business too!!! It will only make an investor to look at the entire Mutual Fund industry with suspect. Saner elements like Mr.Bond are the need of the hour. Thanks Mr.Bond,,,,,, you have been so insightful as always. Thank you once again
Very informative and balanced point of view. Whereas most commenters on social media have been scaremongering and/or deriving political capital from the episode, Mister Bond has presented a no-nonsense, practical perspective. A must read for all advisers.
Excellent insights and thoughtful on part of Mr Bond to come up with this timely note. Most of the time such occurence that is projected as a crisis in bond markets, is a relatively small credit event to begin with, then some immaturish behaviour rightly termed by Mr Bond as "Chinese whispers", then unnecessary redemptions. The moment this happens, the credit event recedes in background and it becomes a liquidity issue as everyone comes to sell. When liquidity comes under stress, no matter what credit you hold everything falls apart. Hence, as a responsible industry participant all of us need to keep things in their limited context and perspective and avoid precipitating a crisis where none exists in the first place.
Word of Wisdom by Mr. Jhaveri to all stake holders. Left standing by advisors with the investors in tough times is the call of the day. To be ready for "Only unexpected is expected in Equity and Debt". Giving time and being calm will help to settle the situation.
I hope both AMCs and advisers listen to such sensible advice. What we need is communication from AMCs which clearly places accrual schemes in various baskets. If I know for sure that a particular fund will invest predominantly in AAA securities ONLY, it would be possible to convince clients to accept lower returns that other accrual funds. Problems arise when nature of securities changes drastically in respect of credit rating due to introduction of lower rated papers.
Retirement Benefits of Sr.Citizen pension drawing PSB Bank officer is invested with the Bank for 10 years at 11%p.a [PREF.roi]" Qly. int. and the interest. amount is invested in MF high risk Growth plan schemes(aggressive). When required the partial redemption without exit load cut is exercised. Is it O.K? Why to go for Debt funds?