Debt Funds Attract Heavy Flows as Investors Seek Liquidity and Safety

Debt funds drew nearly ₹1.6 lakh crore in October as investors shifted to liquid and overnight schemes amid heightened volatility and attractive short-term yields.

Live Market Updates

Latest Financial News

positive

Debt Funds Attract Heavy Flows as Investors Seek Liquidity and Safety

Debt Funds Attract Heavy Flows as Investors Seek Liquidity and Safety
Debt mutual funds recorded substantial inflows of nearly ₹1.6 lakh crore in October, with most investments directed toward liquid and overnight schemes. Investors prioritized safety amid elevated volatility and tightening liquidity conditions across markets. Analysts said rising short-term yields and expectations of delayed rate cuts drove a renewed preference for low-duration debt products. 
While equity flows softened, debt categories continued to benefit from institutional and treasury allocations. Fund houses expect the trend to continue until clearer macro signals emerge.