Debt Funds - A Prominent Player in Indian Mutual Fund Industry

Abstract

We analyze the role of debt in corporate governance with respect to a large emerging economy, India, where debt has been an important source of investment. Several mutual funds have diverted a large portion of their portfolios into debt schemes. Debt funds are low risk profile funds that seek to generate fixed current income to investors. This study aims at investigating the immense existence of debt segment of mutual funds by way of capturing the greater market stand. In this context, the main emphasis of this study is on examining the performance of debt segment in comparison to the other segments of mutual funds. The trend and present status of debt funds in the Indian Mutual Funds Industry will also be examined. To attempt these purposes the study has relied on secondary data. Secondary data have been collected from various journals viz. Indian Journal of Accounting, Indian Journal of Finance, Finance India, text books, publications, such as, Handbook of Statistics published annually by Reserve Bank of India, SEBI Bulletin, web sites, such as, amfiindia.com, nseindia.com, mutualfundsindia.com, and other institutional monthly brochures etc..