Despite posting good returns, credit risk funds saw outflows in 2021. As per AMFI data, the total number of investors’ folio in credit risk funds went down by 21.5 percent to 2.8 lakh. That’s the steepest fall among all debt-fund categories in 2021. Experts believe that investors still avoid credit risk funds as the sentiment for them remains muted. Credit risk funds clocked 7.2 percent in 2021 while the other debt funds delivered as low as 2-4 percent. Also, merger of credit risk funds with other debt categories from the fund houses including PGIM India and Sundaram initiated more redemption.
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