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Indian debt funds swell to record size as they gorge on risk

This has helped lower-rated firms tap debt market when banks are leery of lending

Franklin Templeton Asset Management sold its entire Jindal Steel and Power holdings at a loss last year after ratings downgrades.


FLOWS into credit mutual funds are surging in India, providing a welcome fillip to lower-rated borrowers while exposing investors to higher risks at a time of rising bad debts.

Assets under management at credit opportunities funds, which invest mostly in bonds with...