India city Mumbai pandemic Government crisis Coronavirus India city Mumbai

Pandemic triggers crisis in mutual fund industry

Reading now: 827
www.livemint.com

MUMBAI : Panicked investors have pulled a staggering ₹9,000 crore out of credit risk funds in just three trading days since Franklin Templeton India decided to shut down six of its debt schemes.

Assets under management (AUM) of credit risk funds have dropped 19% in the three trading days to 28 April, according to data compiled by Pulse Labs, a mutual funds data provider.

That compares with ₹5,569 crore of outflows, or 10% of the total AUM, in the whole of March, which typically sees higher redemptions because ofyear-end sales by firms.

The credit risk fund category has been under tremendous stress of redemptions because its underlying assets are highly illiquid corporate bonds, many of them sold by companies struggling to keep themselves

Read more on livemint.com
The website covid-19.rehab is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA