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.