Net redemptions under credit risk funds down by 81.5%

Association of Mutual Funds in India, said on Saturday that the net redemptions under credit risk funds, one of debt mutual fund scheme category, which constitute less than 5% of total debt mutual fund AUM, are tapering off substantially, post RBI‘s announcement of special liquidity measure of Rs 50K crores for the mutual fund industry.

Net redemptions under credit risk funds stood at INR 2,949.49 crores as on Friday, April 24, and peaked at INR 4,294.36 crores as on Monday, April 27, 2020. Thereafter, for the past three days i.e. on Tuesday April 28, and Wednesday, April 29, and Thursday, April 30, the net redemptions under credit risk funds stood at INR 1,847.29 crores, INR 1,251.17 crores and INR 793.99 crores respectively.

All mutual funds have met the redemptions in the normal course of business. There is 81.5% drop in net redemptions in credit risk funds category on April 30, 2020 from the peak net redemptions as on April 27, 2020, courtesy measures announced by the RBI. Nilesh Shah, Chairman, AMFI, said: ”Declining trend in net redemptions from Credit Risk Funds is a welcome development, indicative of Investors comfort from RBI’s special liquidity facility available to the MF industry. AMFI will continue to work with Regulators for normal functioning of the market.”


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