Credit risk funds report positive flows in January as economy recovers

Debt schemes take significant exposure in not-so-highly rated companies and had lost their appeal after April 2019

Topics
credit risk funds | Economic recovery | credit market

Chirag Madia  |  Mumbai 

Credit risk schemes in January recorded their first month of positive flows since at least April 2019, when an industry association started publishing data for various sub-categories of mutual fund schemes.

Credit risk funds saw net inflows of Rs 366 crore in January 2021, indicating that investors were willing for the product that became unpopular because of the collapse of IL&FS in 2019 and Franklin Templeton Mutual Fund discontinuing six schemes last year. Credit risk funds are debt schemes that take significant exposure (at least 65 per cent) to not-so-highly rated companies ...

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First Published: Wed, February 10 2021. 18:52 IST
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