Indian debt mutual funds drew net inflows of approximately ₹1.59 lakh crore in October, according to latest data. Liquid funds led with ₹89,375 crore followed by overnight funds at ₹24,050 crore. The shift came as investors maintained exposure to short-duration, low-risk assets despite rising equity optimism. Reasons cited include sticky global rates and portfolio rebalancing by retail and institutional players. 

The move underscores a cautious stance where equity allocations remain selective and cash-equivalent funds see preference. Analysts suggest monitoring duration risk as rates stay elevated.