Mumbai: Flows to India’s money funds hit a three-month high in November as calm returned to the credit market recently roiled by a rare debt default.

Investors poured a net 1.4 trillion ($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 IL&FS Group.

Also read: Banks turned wary of NBFCs months before IL&FS defaults

“Worries after that credit event are abating and people are returning to money markets," N.S. Venkatesh, chief executive officer at the Association of Mutual Funds in India, said in a conference call on Friday.

Defaults at IL&FS were a reminder that liquid funds, which account for a fourth of the 23 trillion of industry assets, are also fraught with risk. Several fund houses marked down their holdings of debt issued by IL&FS, with some liquid funds losing as much as 5%, or half a year’s worth of gains, in a single day.

Also read: IL&FS crisis: How real is the risk in debt funds?

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.