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Indians switch to bank deposits as worries grow over debt funds

India city Mumbai pandemic Government shock Coronavirus
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MUMBAI : Rattled by the shock closure of some high-profile domestic funds investing in high-yielding debt, Indian investors are quickly moving their cash into the safety of bank deposits.

Bankers told Reuters they have seen heavy inflows into their traditional deposit schemes after one of India's most prominent mutual fund houses in fixed income, Franklin Templeton Mutual Fund, said last week it was shutting down six credit funds.

Templeton wound up the funds due to a lack of liquidity in markets battered by the coronavirus pandemic. Their combined assets of about ₹28,000 crore (almost $4 billion) had large exposures to higher-yielding, lower-rated credit securities.

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