Retail investors participation up in debt market

DSIJ Intelligence / 03 Jul 2017

Retail investors participation up in debt market

There has been a substantial increase in the retail investor’s participation in the debt market, since 2009. The association of mutual fund in India (AMFI) in a recent publication stated that the retail AUM of debt funds improved from Rs 9,000 crore in March 2009 to Rs 79,000 crore in March 2017.

There has been a substantial increase in the retail investors participation in the debt market, since 2009. The association of mutual fund in India (AMFI) in a recent publication stated that the retail AUM of debt funds improved from Rs 9,000 crore in March 2009 to Rs 79,000 crore in March 2017.

The AMFI data also shows that in the last three years the assets of short-term debt funds rose 3.85 times, while as on March 2017, the debt fund reached to Rs 2.72 lakh crore.

Commenting on the increase in retail investors participation in the debt market, G. Pradeep Kumar, CEO, Union Mutual Fund and Vice-chairman AMFI said, “Appetite for dynamic bond funds is picking up among retail investors.”

The retail investors are showing more interest in the short-term funds as these are less sensitive to interest rate changes.

This participation of mutual funds has provided an adequate liquidity in the bond market and as a result, it has helped in reducing the cost of financing of companies and has also helped in the transmission of interest rate cuts.

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