Mutual funds refrained from purchasing short-term money market instruments today due to limited inflows into their schemes, dealers said.
“Banks had redeemed cash from mutual funds schemes for payment towards advance taxes. The money has not yet come back into the schemes and so mutual funds preferred to remain on the sidelines today,” said a fund manager at a private mutual fund. This month banks placed Rs 30,000-32,000 crores worth of CDs as most banks were refinancing their existing CDs.
