A Threefold Rise In The Outflows From Credit Funds

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By admin June 11, 2019 17:17

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Net outflows from credit funds jumped over threefold in the month of May as investors remained wary of the segment in the light of recent downgrades and defaults.

Details

  • According to data from the Association of Mutual Funds in India (AMFI), credit risk funds saw net outflows of ₹4,156 crore in May, as against ₹1,253 crore in April.
  • Further, the net inflows into the overall debt funds segment fell significantly from ₹1.21 lakh crore in April to ₹70,119 crore in May.
  • Industry experts believe that while investors are likely to be sceptical of investing in credit funds, the income and gilt categories could see a jump in inflows on the back of favourable macro-economic factors and also with the central bank cutting rates while changing its stance from neutral to accommodative.
  • Macro-economic factors appear to be favourable with low inflation, high reserves and balance of payments under control. 
  • The flows into equity schemes are likely to revive going forward as uncertainty related to election results are over and the recent market movement also points towards increased investor confidence.

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By admin June 11, 2019 17:17