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