Over the past year-and-a-half, since the IL&FS episode occurred, the magnitude of credit events that have taken place in our country has been unprecedented. Many investors have burnt their fingers in a variety of debt funds due to delays and defaults in repayment of debt by corporate entities. One category that has borne the brunt of these developments is credit risk funds, whose asset under management (AUM) has got depleted by about 27 per cent over the past year.
Know your fund: Credit risk funds, by their nature, aim to earn higher returns for investors by taking credit risk. According to the Securities and Exchange Board of India’s (Sebi) definition, these funds’ mandate allows them to put at least 65 per cent of their portfolio in below-highest rated (that is, non-AAA) corporate bonds.
In India, many investors tend to enter mutual funds based on
India’s unemployment rate rose to 7.78% in February, the highest since October 2019, and up from 7.16% in January, according to data released by the Centre for Monitoring Indian Economy (CMIE)on Monday, reflecting the impact of a slowdown in the economy.
India’s economy expanded at its slowest pace in more than six years in the last three months of 2019, with analysts predicting further deceleration as the global coronavirus outbreak stifles growth in Asia’s third-largest economy.
In rural areas, the unemployment rate increased to 7.37% in February from 5.97% in the previous month, while in urban areas, it fell to 8.65% from 9.70%, the data released by CMIE, a Mumbai-based private think-tank showed.
Shares of Affle (India) climbed as much as 8.6 per cent to Rs 1,949 apiece on the BSE on Monday after the company announced it has signed a definitive agreement to acquire Spain-headquartered Mediasmart, a self-serve mobile programmatic and proximity marketing platform.
At 09:34 am, the stock was trading over 5 per cent higher at Rs 1,886 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading over 1 per cent or 479 points higher at 38,753 levels.
The acquisition of Mediasmart carries a great strategic merit as it strengthens Affle’s cost per converted user (CPCU) based platform and business model for omnichannel advertisers, and also enables Affle to expand into newer developing markets like Latin America and in Mediasmart’s strong hold markets like Europe and US, the company said in its press release. READ MORE