The mutual fund (MF) industry saw the highest-ever outflow in debt schemes for any financial year closing, in 2019-20. A combination of hardening yields amid selling by foreign institutional investors (FIIs) and redemption pressure from corporate treasuries seeking to conserve cash in view of a coronavirus-induced lockdown led to Rs 1.94 trillion of net outflows from debt schemes in March.
Overall, the industry saw nearly Rs 5 trillion, or 18 per cent, of asset erosion in March, with the asset base shrinking to Rs 22.26 trillion from Rs 27.22 trillion at February-end.
