Overnight funds’ assets under management (AUM) saw a three-fold jump in October as investors turned to the side of caution following the IL&FS group default in September. Experts said overnight funds are seeing such elevated levels of investor interest after a long time.
They added that the last time this category saw such a sharp rise in inflows was in 2013, when taper tantrums triggered volatility in the currency and bond markets.
According to industry sources, this category can emerge as a much larger one going ahead, as the Securities and Exchange Board of India (Sebi) may mandate money for