Over the past few weeks, we’ve received several questions from you on performance of the funds you hold, and what the course of action should be. In both debt and equity, recent returns have given enough cause for worry. So we’re listing out various categories of investments you may holding which are seeing volatility, and what you should do about them.
In tough times such as this, it is hard to see your investment value dwindling. And when that happens to your debt funds, it is even harder. We’ve had quite a few queries on whether it is safe now to park money in liquid funds and very short duration funds and whether it should be withdrawn.
After a dramatic comeback, gilt and dynamic bond funds swiftly lost the peak return they made post July 2019. Credit risk funds drew a blank with defaults hurting NAVs like never before. Liquid funds showed high stability but reduced returns due to rate cuts. Last week we wrote about the performance of equity funds in …