Manager Speak: K Ramkumar, Fund Manager, UTI Bond Fund
The fund has got more than 20 per cent of its portfolio invested in securities rated AA and below. Would this not expose the fund to greater credit risks?
The credit risk for a scheme like UTI Bond Fund is always more than a scheme that invests in G-Secs alone.
The G-Sec yield curve has, however, become almost flat since February. This has forced us to look towards lower-rated papers to improve yields for the investors.
The lower-rated papers we have invested in are big names. Hence, chances of default are less.
At 7 per cent, cash forms a significant portion of your portfolio. What is the rationale behind this?
We haven
