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.

positive
Recently

Debt Funds Attract Heavy Flows as Investors Seek Liquidity and Safety

1 min read78 words
Debt Funds Attract Heavy Flows as Investors Seek Liquidity and Safety
Debt funds drew nearly ₹1.
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.
Sentinel