
A lot of investors have been asking us about the falling NAVs across the recommended short-duration funds in the recent days. Here are the broad things you want to know about it. While our recommended funds did witness a fall in their NAV, this was not unique to these funds. Funds across the short-duration category witnessed this drop. In fact, all debt categories were impacted. Look at the graph titled 'Magnitude of fall across debt categories', which highlights the same. This fall was primarily driven by market-wide factors. RBI had announced its plans to reverse liquidity by retracting Rs 2 lakh crore of banking funds through a 14-day reverse-repo operation on 15th Jan. Effectively, banks were told to take money out of the market and park the surplus with RBI. This sell-off triggered a rise in the yields, which led to a fall in bo
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