Indian mutual funds targeting government debt are losing appeal on bets the central bank has little ammunition left after the most aggressive monetary easing since 2009.
So-called gilt plans saw a third month of outflows in April, the longest stretch in almost two years, Association of Mutual Funds in India data show. Reserve Bank of India Governor Raghuram Rajan will cut the benchmark repurchase rate just once more this year, to 6.25 percent, and hold it there until the end of 2017, according to the median estimate in a Bloomberg survey.