Effect on individual investors

Since the defaults have been on commercial papers, it will affect individual investors, too. This is because mutual funds invest in them and these CPs are supposed to be relatively secure investments. Even the value of unit-linked insurance plans, endowment plans, the National Pension Scheme, etc. will be hit.

There may also be some indirect effects. For instance, several projects, including the Bengaluru Metro construction plans, are likely to be delayed, which will affect individuals, too, besides the firms involved.

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