A few months after the liquidity crisis erupted in September, mutual funds switched a chunk of their sovereign bond holdings from central government securities to state development loans (SDLs), showed data from the Reserve Bank of India (RBI).
According to the data, mutual funds held ₹36,851 crore worth government securities (G-Sec) in December 2018, against ₹78,999 crore in September 2018, and ₹70,241 crore in December 2017. Out of the entire pool of government bonds, MFs owned 0.64% in December 2018, down from 1.41% three months ago. This data is typically released with a lag of four months. The December data is the latest available so far.
