Floater funds, which were in demand lately, have witnessed net outflows in November and December. Industry executives say the flows across the debt category have been negative amid tighter liquidity.
The data from the Association of Mutual Funds in India shows that the open-ended debt category saw net outflows of Rs 49,154.1 crore in December.
Floater rate funds have also seen net outflows of Rs 5,169.19 crore and Rs 6,460.18 crore in November and December, respectively.
Floater rate funds have also seen net outflows of Rs 5,169.19 crore and Rs 6,460.18 crore in November and December, respectively.
Sandeep Bagla, chief executive officer, TRUST Mutual Fund, says, “Floater funds give the impression they may provide superior returns when interest rates go up. In