MUMBAI : Credit risk funds, which saw a 35% dip in assets under management (AUM) after Franklin Templeton mutual fund shut its six debt schemes, have been managing redemptions by transferring debt paper to other schemes within the same organisation.e organisation.
The AUM of credit risk funds dropped to ₹31,357 crore on 15 May from ₹48,576 crore on 24 April -- a fall of ₹17,219 crore in just three weeks.
None of the funds in this category, barring Nippon India, had to borrow from banks to honour redemptions. Most of them rummaged through their portfolio holdings to check what could be sold first, following which they transferred a chunk of paper from credit risk funds to other funds within the Asset Management Company (AMC).