Shift to Debt Funds as Equity Inflows Slow in October

Equity inflows dropped 19% in October while debt funds drew ₹1.6 lakh crore, reflecting a shift toward liquid schemes as investors navigated volatility and tightening liquidity.

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Shift to Debt Funds as Equity Inflows Slow in October

Shift to Debt Funds as Equity Inflows Slow in October
Equity mutual fund inflows fell 19% in October to ₹24,690 crore as investors turned cautious amid heightened market volatility. In contrast, debt schemes attracted ₹1.6 lakh crore, signaling a notable move toward liquid and overnight categories. Analysts attributed the shift to tightening liquidity, tax considerations, and temporary risk aversion. Flexicap and sectoral funds continued to receive selective inflows, but the broader trend pointed to defensive allocation strategies. 
Fund managers expect flows to stabilise as clarity emerges around interest-rate expectations and macroeconomic indicators.