Investors play safe, shift to large liquid schemes after IL&FS crisis

Overall liquid assets have risen despite 23 of the 43 fund houses having witnessed a dip in liquid assets over the past year. This shows preference by investors towards larger fund houses

The crisis sparked by Infrastructure Leasing & Financial Services’ (IL&FS) debt default last year has spurred investors to flock to safety and repose their faith in established names. As a consequence, assets of large liquid funds have surged over the past year.

HDFC MF’s Liquid Fund has grown 110 per cent to Rs 86,445 crore over the last one year. Assets under management (AUM) of the scheme stand at nearly four times the size of its largest equity scheme.

This particular scheme now accounts for 3.3 per cent of the industry’s overall assets of Rs 24.53 trillion. Liquid funds invest