There has been too much noise around debt funds over the last 9-12 months and not without reason. However, while a handful of schemes were impacted by the bond defaults in corporate India, not all schemes suffered. On the whole, the debt fund category offers a valuable proposition for investors to add stability to their portfolio – this should not be ignored. Listen in to what Vishal Dhawan has to say about debt funds and within the category the type of funds that he is comfortable recommending for retail investors.

Also watch an earlier conversation with Laxmi Iyer, Head Fixed Income, Kotak Asset Management Ltd, about her take on how liquid funds can be used effectively by retail investors.

Yes, there is an issue and it continues to impact some schemes. However, don’t be dissuaded by the category. Alternatively, you may also want to do your homework before picking the right debt fund.

Please do write in with your comments about your experiences with debt mutual funds.