The Mutual Fund Show: What Investors Of Bank And PSU Funds Can Do

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When a series of defaults in 2018-19 sparked concerns about debt funds, schemes investing in the paper of banks and public sector companies fared much better.

The high quality of borrowers means the risk of default is less for such mutual funds, according to Amit Bivalkar, managing director and chief executive officer at Sapient Wealth Advisors. However, they do get affected if interest rates in the economy go up, he said.

Bivalkar, speaking on this week’s The Mutual Fund Show, cited the possibility of higher rates in 2021 and that may lead to some correction in these funds. “The returns over the last three years for these funds have been very good,” he said. People who may have invested in these funds should take money off them, he said.

Among the themes that investors can consider, he suggests the global consumption basket.

For the fund options available in this category…

…Watch the full show here: