Gilt funds see record monthly outflows in December
Investors are taking profits from gilt funds or g-sec funds, as yields not expected to see meaningful dips from current levels January 08, 2021 / 06:38 PM IST
Gilt funds, which are also known as g-sec funds as these invest in government securities, reported net outflows of Rs 1,802 crore in December, showed data released by the Association of Mutual Funds in India (AMFI). These are the highest monthly net outflows gilt funds have seen in more than a decade.
These funds saw fresh inflows of Rs 1,483 crore in December, while redemptions or withdrawals were at Rs 3,287 crore. The withdrawals more than doubled over the previous month s Rs 1,471 crore.
Synopsis
On December 30, RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and sell two securities aggregating to the same amount using the multiple price auction method.
Agencies
RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.
Related
MUMBAI: The Reserve Bank on Thursday said it will conduct simultaneous purchase and sale of government securities under open market operations (OMOs) for an aggregate amount of Rs 10,000 crore each next week. The decision was taken after a review of the current liquidity and financial conditions, RBI said in a statement.