 "savings, schemes, funds, cash, insurance, tax, salary")
Liquid schemes on Wednesday saw a marginal dip in their net asset values (NAVs) as yields in the short-term commercial paper and the corporate bond market rose by 25-30 basis points (bps).
Industry participants say the spike in yields can be attributed to selling by foreign institutional investors in the shorter-term bond market.
“We have advised institutional investors in our liquid schemes not to panic. And also suggested them to shift their investments to overnight schemes to mitigate the impact of liquidity tightening in the shorter-tenure market,” said a fund manager.
Industry experts said the one-day negative returns in liquid
