2 min read.Updated: 13 Jan 2022, 06:33 AM ISTJIJU VIDYADHARAN
A potential third wave of the covid-19 pandemic is the key near-term risk to this credit outlook
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In March 2020, debt mutual funds (MF) saw their second-largest outflows of ₹1.94 trillion because of liquidity worries spawned by covid-19. It has been an about-turn thence. Between April 2020 and November 2021, the industry saw as much as ₹3.29 trillion of net inflows. That, coupled with mark-to-market gains of underlying assets, has meant debt mutual fund portfolios surged to a record ₹14.74 trillion in August 2021. They closed November at ₹14.52 trillion. This sharp recovery in assets has also been supported by improvement in the portfolio profile of debt MFs.