Debt mutual fund investors face credit risk, liquidity risk and interest rate risk in their portfolio. The first two have gone into the backburner for now.
The Monetary Policy Committee decided to stick to the objective of reviving growth over reacting to inflation as its approach is to gradually tackle the prospects of impacting output rather than a `sledge hammer approach that would kill the nascent recovery.
In April, RBI Governor Shaktikanta Das had said that the RBI will conduct open market purchase of government securities of Rs 1 lakh crore under the G-SAP 1.0 in first quarter of the financial year 2021-22.