Short-term Funds

The yield on the 364-day treasury bill dipped to 6.7240 per cent in an auction on Wednesday, the least since September 2022

Depositors in India have been saving less in banks as soaring equity markets and avenues such as mutual funds, insurance funds and pension funds lure them

The return of debt funds appears to be a reset of institutional allocation, as well as locking in higher rate

ICICI Prudential's short-term and medium-duration funds outperformed on the back of timely shifts in strategies

Banks have parked 6.1 trillion rupees ($82.5 billion) of excess cash with the central bank at the reverse repo rate of 3.35%

While Muthoot has over 12% share of commercial papers in its total borrowings as of September 2018, Manappuram has over 25% in the same period

The short-term trend bounced from support at 9,450 in late June

Short-term funds likely to outperform from here on, as RBI seems to have come close to the end of rate cycle and scope for future rate cuts has reduced