InvestorQ : Why have debt fund outflows been so strong in March 2020? Is it because of the year or because of COVID-19?
Lavanya Subramanian made post

Why have debt fund outflows been so strong in March 2020? Is it because of the year or because of COVID-19?

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ishika Banerjee answered.
6 months ago
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March 2020 was a month of heavy outflows from debt funds. For March 2020, AMFI has reported mutual fund outflows to the tune of Rs.212,000 crore. That is the highest single-month outflows in mutual funds and largely driven by outflows from debt funds even as equity fund flows were robust. If you look at the break-up of the outflows, March was marked by heavy outflow from short duration funds and arbitrage funds. Clearly, the funds which corporates and institutions used for treasury management were worst hit. Institutional investors were playing it safe ahead of the end of the fiscal year and the lockdown over COVID-19 and that led to a major redemption from the shorter duration funds. Even the normally staid PSU Banking funds saw outflows during the month. It appeared to be a clear shift to low risk liquidity.

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