I'm sitting on losses on my debt funds. Is there a chance of recovery or should I exit?
Answer transcript: Yes, absolutely, there will be a recovery and this is the advantage of bond funds because of the way these fixed income funds work. Everyone took a view and longer maturity funds took a hit but they will recover. If you were in a dynamic bond fund you may take 4-5 months to recover. In a short term bond fund, you might recover your money in 1.5 months. Most of the ultra-short term funds have almost recovered and liquid funds did not take a hit. Depending on the fund you would have recovered your money in anywhere between 1-6 months. This is the time frame if someone invested a few days before the announcement. If you invested a year ago, I don't think you would face losses now, and you would be sitting a on substantial gains.