Retail participation up in debt funds

In other debt-oriented funds, retail assets jumped from about Rs 45,000 cr to Rs 64,000 cr

Retail investors, the trade jargon for non-wealthy individuals, are increasingly looking to debt mutual funds (MFs).

Seeing opportunity in the falling rates on basic banking products, fund houses and distributors are pushing this alternative. Predictive returns and the need for diversification are also propelling this, say those in the segment.

The Rs 17-lakh crore MF sector is seeing the retail investor pie growing in the debt category, which by large sees investments from companies and institutional investors. Liquid and money market schemes have seen retail assets rising from Rs 3,890 crore to a little over Rs 5,400 crore in 2016.