The curiously persistent rise in inter-scheme transfers of debt securities

MFs transferred over a trillion rupees worth of paper between schemes last year

Asset managers are transferring debt securities between schemes, at a greater rate than any other time since at least 2010-11. The value of such transactions has risen for the fifth year in a row in FY18 and currently stands at Rs.1.67 trillion.

Business Standard also looked at the data as a percentage of mutual funds’ debt assets. This is the highest since 2010-11. The value of transfers accounted for 14.99% of the average fixed income assets, shows data from mutual fund tracker Morningstar India. This is the highest in seven years. Debt funds usually sell securities in the open