Thanks to RBI’s special liquidity window of Rs.50,000 crore for mutual funds, the net redemption in credit funds has reduced from Rs.4300 crore on April 27 to Rs.793 crore on April 30, a decline of 82%, shows the latest AMFI data.
In a press release issued today, AMFI said, “Net redemptions under credit risk funds, one of debt mutual fund scheme categories, 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 in credit risk funds stood at Rs.2,949.49 crore as on Friday, April 24, and peaked at Rs.4,294.36 crore 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 Rs.1,847.29 crore, Rs. 1,251.17 crores and Rs. 793.99 crores respectively, said AMFI.
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."
