Post Budget, investors scramble to exit debt funds

After robust inflows of almost Rs 20,000 crore in the first six trading days of the month, debt funds have seen an outflow of almost Rs 7,824 crore after the Budget was presented.

This outflow does not reflect the true extent of the disenchantment of debt fund investors because it does not include close-ended FMPs, the worst hit category of funds.

Debt funds have seen massive inflows of nearly Rs 3,70,000 crore in 2014, but analysts fear this could reverse if the amendments sought by the industry and corporate investors are not incorporated soon.