MF redemptions in debt segment continue despite RBI's liquidity window

Data shows Rs 4,000 crore of borrowing facility already used

The Reserve Bank of India’s (RBI) move to offer a liquidity window to the mutual fund (MF) industry, to allay concerns over redemptions, doesn’t seem to be helping matters.  The industry data shows credit risk funds and a clutch of duration scheme categories have seen asset erosion of over Rs 22,069 crore in three days since Franklin Templeton Mutual Fund’s wind-up move. 

According to the data, the asset base of credit risk funds on Tuesday shrunk another 11 per cent, following erosion of Rs 4,869 crore.

Other debt categories are also witnessing redemption pressure. The asset base of medium-duration fund