MUMBAI: Mutual funds reduced their exposure to commercial papers (CP) in June in the aftermath of the Infrastructure Leasing and Financial Services (IL&FS) crisis. According to data released by Prime Database on Friday, holdings of mutual funds in CP in value terms stood at ₹3.72 trillion as on 30 June, down 13.69% from ₹4.31 trillion in the previous month. Pranav Haldea, managing director, Prime Database Group, said: “Mutual funds have significantly reduced their exposure to CPs, after the IL&FS crisis last year." Holding of mutual funds in corporate bonds in value terms stood at ₹5.80 trillion in June, down 4.13% from ₹6.04 trillion in May. The highest ever holding of mutual funds in corporate bonds was in September 2017 at ₹6.61 trillion.

Source: Mint July 19, 2019 17:48 UTC