Asset management companies are aggressively wooing corporates to invest their idle cash in short-term instruments such as liquid and money market funds.
Companies can make a neat return of 10 per cent on an annualised basis by investing in short-term liquid funds. The mutual funds (MFs) are pulling out all stops in order to accommodate their corporate clients, stopping just short of violating the Securities and Exchange Board of India (Sebi) regulations. It also helps that Sebi has no specific guidelines on how much a single investor can put in a scheme.
Admitting to corporate money being mobilised, an official with SBI Mutual Fund said, "How else do you think the large sums being mobilised can be accounted for?"
Apart from the funds survival, the
