After remaining range-bound for nearly six years, mutual funds' exposure to corporate bonds is showing signs of a pickup, driven by strong inflows into corporate bond funds and rising investor interest in hybrid schemes.
In 2024, the total value of mutual funds' corporate bond holdings increased by 18 per cent to reach Rs 6 trillion, a level last seen in 2021, according to data from the Securities and Exchange Board of India (Sebi). This represents a significant rise from Rs 5.1 trillion at the start of calendar year 2024. However, this exposure remains at the same level as in early 2018.
