INSUBCONTINENT EXCLUSIVE:
rare debt default.
Investors poured a net 1.4 trillion rupees ($20 billion) into liquid plans in November, industry data show
The inflow is the highest since August, a month before the funds suffered the worst outflows since at least 2007 amid defaults at the ILFS
Venkatesh, chief executive officer at the Association of Mutual Funds in India, said in a conference call on Friday.
Defaults at ILFS were a
reminder that liquid funds, which account for a fourth of the 23 trillion rupees of industry assets, are also fraught with risk
Several fund houses marked down their holdings of debt issued by ILFS, with some liquid funds losing as much as 5 percent -- or half a
from the previous month ahead of the state elections.Stock plans received a net 84.1 billion rupees in November, down from 126 billion
rupees in October, the data show
since Prime Minister Narendra Modi took office in 2014
The influx of cash has been aided by policy changes, including the currency clampdown in 2016, which hurt returns from property and gold,
the traditional favorites.The liquidity has provided a buffer against outflows sparked by the risk-off mood: mutual funds bought $16 billion
of shares this year, compared with sales of about $5 billion by their global peers, data compiled by Bloomberg show.
