Investor flows shift to 'safer' corporate bond funds, say experts

Industry experts say that this trend is likely to continue

The fears around credit risk funds have prompted mutual fund (MF) investors to shift their allocation towards corporate bond and banking and PSU funds, which tend to invest in relatively less-risky papers. 

Both categories have seen steady flows in recent months. In the current financial year (from April to August), banking and PSU funds have garnered over Rs 15,000 crore of net investor flows, while corporate bonds funds have received about Rs 11,000 crore of flows. 

In the same period, credit risk funds have seen outflows to the tune of Rs 13,782 crore, showed data from Association of Mutual Funds in India.