Home / Markets / News / Credit risk fund outflow reduces as yields rise on rally in rates

Credit risk fund outflow reduces as yields rise on rally in rates

Offer significant spread over 'AAA' corporate bond funds over 3-yr period

credit risk funds, investments, outflow, inflow, fpi, fdi, FII, investments, funds, markets

Premium

The category saw outflows in excess of Rs 5,000 crore each in March and May, and posted record outflows of Rs 19,239 crore in April | illustration: Binay Sinha

Ashley Coutinho Mumbai

3 min read Last Updated : Jan 26 2021 | 12:48 AM IST

The worst seems to be over for credit risk funds, with the category seeing outflows of just Rs 205 crore over the past two months. They witnessed limited interest after the pandemic’s outbreak as investors fled to the safety of ‘AAA’-oriented funds, despite the high yield to maturity (YTMs) on offer at the time.

The category saw outflows in excess of Rs 5,000 crore each in March and May, and posted record outflows of Rs 19,239 crore in April. Outflows gradually reduced in the second half of 2020. Net assets of these funds stood at Rs 28,482 crore as on December

Topics : credit risk funds stock market trading corporate bonds

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in