Targeted liquidity for NBFCs, MFs to ease systemic stress, says R Sivakumar

The outflows seen in March are a quarterly and annual phenomenon whereby some institutional and corporate investors redeem and re-invest at the start of the new quarter/year, says Sivakumar

The chase for yield needs to be balanced with an understanding of risk, says R Sivakumar, head - fixed income, Axis AMC. In an interview with Ashley Coutinho, he says the RBI's new liquidity facility has calmed the market and has reduced investor anxiety regarding liquidity in some of the funds. Edited excerpts: 

Many debt fund investors have rushed to redeem their investments in the past few weeks. Debt funds saw one of the highest-ever outflow of Rs 1.94 trillion in March. Is the redemption pressure primarily restricted to institutional investors or is it widespread across the board? 

The outflows