In this video we list the various risks involved in debt mutual funds. We speak about credit risk, interest rate risk, concentration risk & liquidity risk. With the help of examples of crisis in DHFL, IL&FS and Vodafone you will be able to understand the risks involved while investing in debt funds.
We have also explained the kind of filters, checks and research an investor could follow to be able to avoid losses in debt mutual funds. The Vodafone and DHFL debt crisis amount to sudden collapses in the NAVs of debt funds, and hence it is essential to understand and mitigate the risks prior to investing.