India Inc presses fund houses for more AAA-rated firms in portfolios

Corporates are putting more checks and balances in place before committing monies to debt schemes

Corporate India has stepped up due diligence of its mutual fund investments and is pressing fund houses to tweak their portfolios to include more AAA-rated companies and sovereign public sector undertakings, even if it means sacrificing returns. 

Institutional investors had gravitated towards bigger fund houses that were perceived as safer after the IL&FS crisis. Though this helped to some extent, the larger fund houses also took a hit on net asset values of some of their schemes after a few more credit episodes came to the fore. 

What’s more, fund houses also passed on the losses to investors, making it clear that