Two Indian Funds See Assets Drop by Half Amid Exit From Risk

Indiabulls Asset Management and DHFL Pramerica Mutual Fund have seen their assets plunge by more than half in the December quarter. That shows fears of India’s non-bank finance companies still linger, Bloomberg News reported. The dwindling in assets is the most among any mutual-fund company in India during the period, data compiled by Bloomberg show. While flows to the industry have slowed recently because of heightened market volatility and political uncertainty ahead of elections due by May, it also suggests investors continue to shun risk months after defaults by an infrastructure lender shocked India’s non-bank finance companies. “Institutional investors have been pulling out of debt funds that hold a high exposure to papers of their NBFC parent or from schemes with high NBFC exposure,” said Vidya Bala, Chennai-based head of mutual fund research at Wealth India Financial Services Pvt., which runs FundsIndia.com. Read more

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