Top Section
Explore Business Standard
Don’t miss the latest developments in business and finance.
Debt mutual funds witnessed an outflow of Rs 84,202 crore in three months ended March 2021, with liquid schemes contributing 56 per cent of the withdrawal, according to a Morningstar report. This was the only quarter in 2020-21 that saw outflow in the fixed-income or debt category. The outflow comes following an inflow of Rs 1.69 lakh crore in December quarter, Rs 35,522 crore in September quarter and Rs 1.09 lakh crore in June quarter. According to the report, fixed-income category had faced a challenging atmosphere since the downgrade to IL&FS back in 2018. A spate of downgrades to other entities following the IL&FS crisis left some of the fixed-income funds in a serious liquidity crunch as redemptions in certain categories explode, it added. "Given the uncertainty in the economy caused by COVID-19, investors are again moving toward risk-averse assets in the fixed-income segment during volatile times, as they tend to provide better protection to their capital relative to ...