Wealthy investors are shunning illiquid investments in an uncertain economic environment where cash and liquidity are king.
Market linked debentures (MLDs) and credit risk funds -- two products that had grown popular in the past two years --- have fallen off the map post the covid-19 pandemic.
MLDs are close-ended structured products, debt or equity-linked, that come with a two to three year lock-in. For equity-linked structures, the underlying can be an index such as Nifty 50 or a basket of stocks. The payoff for investors can be in the form of a fixed coupon or participation rate. Debt MLDs