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Debt funds to invest more in government debt. Will this benefit you?

India covid-19 Government crisis bill
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On 18 May, capital markets regulator Securities and Exchange Board of India (Sebi) allowed certain categories of debt mutual funds to invest up to 15% more of their assets in government debt, which is the most liquid form of debt in the Indian debt market.

The regulator's move is aimed at allowing mutual funds to build up liquidity, given that the industry was under pressure recently following massive redemptions post the winding up of six Franklin Templeton Mutual Fund schemes on 23 April.

Sebi has provided this facility to corporate debt funds, credit risk funds and banking and PSU debt funds for a period up to three months from the date of the circular. Why was this necessary? Remember that open-ended mutual funds allow investors to

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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