Advisors say banking and PSU debt funds are relatively safe
In short
Mutual fund advisors say banking and PSU debt schemes are relatively safe. The reason given is that these funds invest in bonds and papers of banks and public sector companies.
The idea is that government-backed issuers may carry less credit risk. The report does not name specific funds, and it does not say anything about returns or performance.
What the reporting says
Mutual fund advisors said banking & PSU debt schemes are relatively safe, because they invest only in bonds and papers of banks and public sector companies. The reported rationale is that these issuers are government-backed and therefore seen as having lower credit risk. The immediate implication is guidance for cautious debt investors, but the source does not name specific funds, returns or a market move.
Why it matters
Advisors are recommending banking and PSU debt schemes as relatively safe for investors who want bond exposure. The source says these schemes invest in papers of banks and public sector companies, which are viewed as government-backed and lower risk. That is relevant for mutual fund investors and the debt market, but no specific fund names, yields, or time period are provided.