Most large funds have little exposure to risky bonds
As per Morningstar India data, in the short duration bond category, Franklin Templeton, BOI AXA, Indiabulls, Edelweiss and Aditya Birla Sun Life are the top five fund houses (in that order) with exposure in the range of 9% to 48.99%. Short duration bond funds invest in bonds which mature between the duration of one and three years.
Among the low duration and ultra-short duration schemes, Franklin, Edelweiss, BOI AXA, IDBI and Reliance are the top five fund houses (in that order) which have exposure in the range of 7.1%- 44.1%. Low duration bond schemes invest in instruments which mature between six months and one year; and ultra-short low duration schemes invest in instruments which mature between three and six months. It must be noted that short-term bond funds are often positioned as a substitute for bank savings account or fixed deposits. Hence, they are not expected to compromise on the safety aspect.