By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
News for IndiaNews for IndiaNews for India
  • Home
  • Posts
  • Search Page
  • About us
Reading: Mutual funds seen favouring short-term Indian corporate debt after inflows hit 2-year high | Stock Market News
Share
Font ResizerAa
News for IndiaNews for India
Font ResizerAa
  • Economics
  • Business
  • Home
  • Categories
    • Business
    • Economics
  • About us
  • Sitemap
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
News for India > Business > Mutual funds seen favouring short-term Indian corporate debt after inflows hit 2-year high | Stock Market News
Business

Mutual funds seen favouring short-term Indian corporate debt after inflows hit 2-year high | Stock Market News

Last updated: June 11, 2025 3:13 pm
2 months ago
Share
SHARE


MUMBAI, June 11 (Reuters) –

Mutual funds are expected to increase purchases of short-term Indian corporate bonds in the coming weeks, according to fund managers, after inflows into corporate bond schemes hit a two-year high in May amid surplus liquidity.

Corporate bond funds recorded net inflows of 119.8 billion rupees ($1.40 billion) last month, more than triple of April’s total and the highest since March 2023, according to data from the Association of Mutual Funds in India (AMFI).

“Liquidity is in surplus so there could be some flows, but investments should shift in the up to three-year segment as yields on other segments are expected to rise more,” said Akhil Mittal, senior fixed income fund manager at Tata Asset Management.

He added that flows were focused in the three- to five-year papers in May. Last month, Indian companies had also

the bulk of their bond supply in the up to five-year segment.

While flows may moderate after the Reserve Bank of India (RBI) signalled an end to its rate easing cycle last week, fund managers say they still expect steady demand for short-term bonds.

“Corporate bond spreads were looking attractive in May as the yield curve began to steepen from being flat to inverted,” said Mahendra Kumar Jajoo, CIO – fixed income at Mirae Asset Investment Managers (India).

He expects flows in shorter-duration bonds, including one- to three-year debt, as he does not anticipate further rate cuts in the near term.

Yields on two- and three-year AAA-rated corporate bonds fell 25-28 basis points in May, while the five-year tenor eased 22 bps, according to LSEG data.

Longer duration government and corporate bond yields have risen by 10-12 bps since Friday, when the RBI cut rates by 50 bps and shifted its stance to “neutral”.

Still, yields on up to three-year corporate bonds remain around 10 bps below end-May levels.

“The corporate bond curve, especially in the up to three- year space, could still steepen from current levels. Shorter tenor bonds remain attractive,” said Anurag Mittal, head of fixed income at UTI Asset management.

($1 = 85.4320 Indian rupees)

(Reporting by Dharamraj Dhutia, additional reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)



Source link

You Might Also Like

LIC shares end 3 pc higher post-Q1 earnings | Stock Market News

India bond yields a tad up this week amid RBI-led selloff | Stock Market News

Record-setting market: Using ETFs to help avoid hefty tax bills

Trade Desk tumbles after CEO warns of tariff impact on large brand advertisers | Stock Market News

Tata Motors Q1 Results: Net profit drops 30.5% YoY to ₹3,924 crore; margins drop to multi-quarter low | Stock Market News

TAGGED:corporate bond schemesIndian corporate bondsliquiditymutual fundsshort-term bonds
Share This Article
Facebook Twitter Email Print
Previous Article Overweight on financials, industrials; power, railways, defence look attractive for long term: Mihir Vora, TRUST MF | Stock Market News
Next Article NSDL IPO likely to hit Indian stock market in July; company looks to raise $400 million | Stock Market News

We influence 20 million users and is the number one business and technology news network on the planet.

Find Us on Socials

News for IndiaNews for India
© Wealth Wave Designed by Preet Patel. All Rights Reserved.
  • BUSINESS