CHENNAI: After the Reserve Bank of India (RBI) announced a special liquidity measure of Rs 50,000 crore for the mutual funds space, redemptions under credit risk funds have lowered by over 81 per cent, said the Association of Mutual Funds in India (AMFI).
AMFI said net redemptions under credit risk funds stood at Rs 2,949.49 crore as on April 24, and peaked at Rs 4,294.36 crore as on April 27. Thereafter, on April 28, 29 and 30, the net redemptions under credit risk funds stood at Rs 1,847.29 crore, Rs 1,251.17 crore and Rs 793.99 crore respectively.
There is an 81.5 per cent drop in net redemptions in the credit risk funds category on April 30 from the peak net redemptions as on April 27 due to measures announced by the RBI, said AMFI.
“Declining trend in net redemptions from credit risk funds is a welcome development, indicative of investors’ comfort from the RBI’s special liquidity facility available to the MF industry,” AMFI chairman Nilesh Shah said.
Credit risk funds is one of the debt mutual fund scheme categories and constitute less than 5 per cent of the total debt mutual fund AUM.