Debt-oriented mutual funds saw a strong rebound in October, registering net inflows of ₹1.6 lakh crore, mainly supported by fresh allocations into liquid and overnight funds. This marks a sharp turnaround from the significant ₹1.02 lakh crore outflow recorded in September, according to data released by the Association of Mutual Funds in India (AMFI).
The surge in inflows helped lift the total assets under management (AUM) of debt mutual funds by nearly 10%, rising from ₹17.8 lakh crore in September to ₹19.51 lakh crore at the end of October.
Monthly Flow Trend
Debt fund flows have been volatile in recent months:
- October: +₹1.6 lakh crore
- September: –₹1.02 lakh crore
- August: –₹7,980 crore
- July: +₹1.07 lakh crore
Industry data indicates that institutional capital returning to short-term instruments after quarter-end withdrawals played a key role in the October inflow.
Category-Wise Breakdown
Out of 16 debt mutual fund categories, 10 recorded positive inflows in October. Leading contributors included:
| Category | Net Flow |
| Liquid Funds | +₹89,375 crore |
| Overnight Funds | +₹24,051 crore |
| Money Market Funds | +₹17,916 crore |
| Corporate Bond Funds | +₹5,121 crore |
Short-duration, ultra-short, and low-duration funds also saw renewed interest as investors redirected surplus funds into accrual-based strategies.
Meanwhile, certain categories showed muted or negative flows:
| Category | Flow Trend |
| Credit Risk Funds | Weak inflows |
| Dynamic Bond Funds | –₹232 crore |
| Gilt Funds | –₹931 crore |
These outflows align with ongoing sensitivity around longer-duration instruments amid fluctuating yield conditions.
Equity Mutual Fund Comparison
Equity mutual funds also reported positive flows in October at ₹24,690 crore, though lower than the ₹30,421 crore recorded in September.
Summary
- Debt mutual funds saw strong inflows of ₹1.6 lakh crore in October, reversing September’s large outflows.
- AUM in the category increased nearly 10%, rising to ₹19.51 lakh crore.
- Liquid and overnight funds were the top contributors, followed by money market and corporate bond funds.
- 10 out of 16 debt fund categories recorded net inflows, while gilt, dynamic bond, and credit risk funds lagged.
- Equity mutual funds also recorded inflows during the month, though lower than the previous month.
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