Indian credit risk funds suffered large redemptions in April after Franklin Templeton’s shock decision to wind up six debt schemes triggered fresh turbulence in the nation’s debt market.
The category saw a net withdrawals of ₹19,239 crore last month, up from outflows of ₹5,570 crore in March, according to data released Friday by the Association of Mutual Funds in India.
The assets under management of credit risk funds have fallen to ₹35,222 crore, as of April 30, showed AMFI data. “The Franklin event intensified redemptions in credit funds that we saw in March," Vidya Bala, head of research and co-founder at Chennai-based Primeinvestor.in, told Bloomberg. “There’s a clear flight to safety as flows to gilt funds have jumped and a good chunk