InvestorQ : What were the flows into debt funds like in May 2020? Are the redemption still continuing for debt funds?
Deepa Salunkhe made post

What were the flows into debt funds like in May 2020? Are the redemption still continuing for debt funds?

Answer
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Juvina Maggie answered.
3 months ago


Actually, based on early indications coming from AMFI based on registry data, there was a sharp spike in flows into debt funds in the month of May 2020. The total flows into debt funds in May stood at Rs.94,224 crore as compared to Rs.43,431 crore in April. The net AUM of debt funds already stood at Rs.7.44 trillion as of the end of April and the sharply higher net flows in May would have resulted in the AUMs scaling higher by over 12%. For the month of May, credit risk funds saw a further drop in AUM of Rs.5200 crore indicating that post the Templeton fiasco, the investors continue to exit credit risk funds. Medium duration funds also saw outflows in May. Most of the other low risk categories like money market funds, corporate bond funds and bank & PSU funds saw sharp inflows during the month of May 2020. Liquidity has been driving debt fund flows. While there is a restructuring of the mix in debt funds, overall flows into low risk funds appear to be continuing.