Following are the best MF schemes that have greatest exposure to NBFC shares. For those who are interesed in investment find the good yield for the commercial papers. Its because of the hard liquidity into the process. Investors issued worries on the money market tightness amidst following financial crisis at IL & FS.
The stock rates of most of the Housing Finance and NBFC firms showed steep pressure and plunged by 10-40 % intraday on Friday after the news broke out that DSP MF was compelled to sell commercial papers of DHFL (in the price range of Rs.200 to 300 crore) in the secondary market at a bigger yield.
Further, investors wished to be risk-averse after the latest example of IL&FS, that dampened the overall market sentiment.
Other housing finance firms & NBFCs, also, witnessed sell-off, as sparing cost for NBFCs, is anticipated to increase and they could meet challenges in raising funds.
Market participants are connecting this with other NBFCs and Housing Finance companies that has commercial papers as one among their fund sources. While with DHFL, commercial paper reports for six percent of its borrowings.
The Management of DHFL has declared that they have not defaulted on any kind of bonds and also told that their commercial book reveals at Rs.7,500cr.
Several equity mutual funds schemes have important exposure to NBFCs. The panic in NBFCs has not settled wholly. There are worries over short-term liquidity in the market for all papers promoted by NBFCs.
Hence, we suggest a client to decrease exposure to equity mutual fund schemes with vital exposure to NBFCs. Here is all the list of mutual funds schemes with the good exposure to DHFL and other NBFCs:
We suggest investors to fund in diversified equity mutual fund schemes with less exposure to NBFCs. While in sector funds, we advice investors to fund in information technology and Pharma funds as both sector have good tailwinds.