So, what led some fund houses to take riskier bet in their debt mutual fund schemes that led to the concentration of risk with regards to their corporate debt paper? One of the answers being that it was purely the play of miss-selling and the allocation mistakes (can be allocators, advisors, direct investors, bank distributions, mutual fund recommendations and IFA) echoes some fund managers. “In our understanding in the last three to four years, we have seen that as the deposit rates were falling, as a result most of the debt MFs were sold as an alternative to generate slightly higher returns than fixed deposits,” said Pankaj Pathak, Fund Manager-Fixed Income, Quantum Mutual Fund. “So major reason being hunt for higher yields was one the major reason which attracted the lot of investors into the debt schemes and even fund managers took more risk to generate that high yield,” he further added.