Mutual funds turning to debt, trim equity--With equity markets in the doldrums, mutual funds are increasingly turning to debt instruments. According to information available, several mutual funds have diverted a large portion of their portfolios into debt schemes in the past few months.

The debt portion of assets under management of the mutual funds industry increased by around 25 per cent by May-end from January 2008, while the share of equity fell by 14 per cent, according to data provided by Value Research, an organisation which tracks mutual fund data.

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