My Authors
Read all threads
Day 2 on Twitter. Coming to the next set of awards - The "Foot in Mouth" Awards. A clear winner in this category is DSP Mutual Fund. I have shortlisted them for their sheer cockiness. Thread. (1/10)
In September, 2018, the Fund House triggered a panic by selling DHFL bonds at distressed levels. It was a business call; and hence a benefit of doubt could be given. (2/10)
What cannot be forgiven though, is the brazenness with which the Fund house eulogised their portfolio selection capabilities. 3/10
In an article titled 'How 3 mutual funds weathered the toxic-paper debt fund crisis' by a leading daily (29 April, 2019), a fund manager of the Fund, showered praises on the Fund, as if it is God's greatest gift to mankind. 4/10
The fund house preached that 'Although the promoter or group provides an overreaching comfort, we prefer fundamentally sound businesses with potential to generate stable cash flows in addition to parameters such as debt and interest coverage.' 5/10
Ironically, a few months later, DSP Mutual Fund took a 50% haircut on its exposure in Coffee Day Natural Resources - a promoter entity of the Coffee Day group. 6/10
In the aforementioned article, the Fund also noted that "It is important to assess the ability of companies to refinance debt through banks or capital markets". 7/10
Tragically again, the Fund house was holding DHFL, IL&FS group companies and Sintex in its portfolio. All these entities failed to refinance their debt. So much for 'assessing the ability of companies to refinance debt'. 8/10
The preachy fund house further gloated that it also considers the structuring of the instrument in a way that provides greater security to the lender. This includes ring-fencing of assured cash flows, priority payments through waterfall structure and cash kept aside. 9/10
With all the safety measures in place, it is surprising that the fund house not only suffered credit setbacks but also saw the AUM of Credit Risk Fund shrink from ~ Rs. 6, 880 Cr (Aug 2018) to ~ Rs. 3, 300 (July 2019). The 1 year return is -3.67%. Preachy parrot. Huh! 10/10
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Funter

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!