The equity exposure of mutual funds (MFs) to non-bank lenders approached nearly Rs 1 trillion, an analysis of data by MF tracker Value Research shows.
This includes housing finance companies, development finance institutions and those involved in equipment leasing, among others.
Mutual fund houses are likely to adopt a wait-and-watch approach, though some profit booking had started to set in before the crisis came to the fore, according to those watching the developments.
The ongoing fixed-income market issues affect some lenders more than others. Banks, which have a deposit base, have an easier time during a liquidity squeeze compared to