Liquid funds, commonly used by corporates to park short-term cash, have experienced significant outflows due to the Reserve Bank of India’s measures to tighten liquidity conditions and cyclical outflows at the end of the half-year. Data from the Association of Mutual Funds in India (AMFI) shows that liquid funds witnessed net outflows of ₹74,176 crore in September, the highest among debt oriented schemes. Bond yields have risen sharply since August as the RBI has drained excess liquidity from the banking system.
Radhika Gupta, MD & CEO of Edelweiss AMC, discusses the factors leading to a potentially good decade for corporate India and highlights the balanced and multi-sectoral nature of the Indian opportunity. She also talks about the changing consumer trends, the growth of the digital economy, credit access, and the positive earnings season with broad-based resilience of corporate earnings.
