MF Financiers can now collect MTM losses in any manner mutually agreed under the financing agreement signed with the borrower instead of the earlier stipulated mandatory collection of MTM losses in cash only in case of 5% decline in MF financed security value.
Just like equity ETFs, the debt ETFs are also passively managed and trade on a regular exchange.
Investment in debt ETFs is well suited for investors with a low risk profile, as it provides a strong defensive addition to their investment portfolios.
