InvestorQ : Have credit risk funds in India been affected by the Templeton decision to shut down 6 of its funds?
Anjana Aiyar made post

Have credit risk funds in India been affected by the Templeton decision to shut down 6 of its funds?

Answer
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Arya Nanda answered.
5 months ago


The impact has been immediate on the credit risk funds. In fact, credit risk funds saw enhanced outflows after Templeton shut down 6 of its funds last week. According to data released by AMFI, multiple fund houses have seen a sharp contraction in the AUM of credit risk funds post April 24 when Templeton took the decision. Kotak Credit Risk fund saw outflows of 27% of AUM in last four days while the credit risk funds of AMCs like Aditya Birla, PGIM, IDFC, HDFC and DSP saw outflows of between 21% and 25% of their overall credit risk AUMs. This could raise serious questions about the efficacy of such credit risk funds at a time when credit quality has been deteriorating in India.