Credit funds could see unlisted exposure rise over high redemptions

Shrinking asset size has added to challenges in bringing down levels of such investments

High redemptions in credit-risk funds could further increase exposure levels of such funds to unlisted debt papers. The schemes in this category have seen their asset size shrink and this is likely to lead to a rise in the proportion of unlisted debt papers.
 
According to industry estimates, several schemes in the category had exposure to unlisted securities in the range of 10-22 per cent.
 
Industry players say that fund houses could find it challenging to bring down unlisted exposure in such schemes in-line with the regulatory norms as redemptions have continued. In May, the credit-risk fund category