Credit Default Swaps (CDS) can be likened to insurance contracts within the market realm, serving as a safeguard against a borrower's default. These financial instruments play a crucial role in helping mutual funds effectively navigate and mitigate risks.

Understanding when and why to sell a mutual fund is as important as knowing when and where to invest, and often requires a mix of strategy, timing and foresight.

Subject: Flexibility in participation of Mutual Funds in Credit Default Swaps (CDS) 1. Under the existing regulatory framework, Mutual Funds in India are permitted to participate in CDS transactions only as users i.

The Securities and Exchange Board of India (Sebi) on Friday allowed mutual funds to participate as both buyers and sellers in the credit default swap (CDS) segment, providing greater flexibility to boost liquidity in the corporate bond market.