Credit risk funds: credit risk funds are seeing renewed interest from investors


Synopsis

Although these inflows are low, the category has recorded inflows for the past seven consecutive months, receiving ₹1700 crore, after heavy outflows from April 2020 when the Franklin Templeton episode unfolded and that investors were limited to AAA-rated paper and government securities. . According to Sebi standards, a credit risk fund must invest at least 65% of its corpus in less than the highest rated paper.

Mumbai: The search for higher yields and diminishing fears of default in an environment of easy liquidity and low interest rates is leading investors to make allocations to credit risk funds in their debt portfolios. Although these inflows are small, the category has recorded inflows for the past seven consecutive months receiving ₹1700 crore, after heavy outflows from April 2020 when the Franklin Templeton episode unfolded and that investors were content to

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