Debt mutual fund inflows reach Rs 1.57 lakh crore in October

New Delhi, Nov 17 (PTI) Debt-oriented communal funds witnessed a beardown betterment successful October, driven by investments successful liquid schemes and attracting a nett inflow of Rs 1.57 lakh crore aft immense redemptions successful the erstwhile month.
Notably, 14 of 16 indebtedness communal money categories reported nett inflows during the month, portion medium-duration and recognition hazard funds maintained their inclination of accordant outflows.
The affirmative inflow boosted the plus basal of indebtedness communal funds by 11 per cent to Rs 16.64 lakh crore successful October-end from Rs 14.97 lakh crore astatine the extremity of September, according to information with Association of Mutual Funds connected India (Amfi).
As per the data, indebtedness communal funds attracted inflows of Rs 1.57 lakh crore successful October, marking a crisp reversal from the outflows of Rs 1.14 lakh crore recorded successful September.
Within the indebtedness fund, liquid funds led the inflows with Rs 83,863 crore, accounting for 53 per cent of the total, followed by overnight funds and wealth marketplace funds with Rs 25,784 crore and Rs 25,303 crore, respectively.
"Corporates typically transmission surplus funds into liquid and wealth marketplace funds post-tax settlements successful September, reflecting a penchant for these low-risk, highly liquid options," Nehal Meshram, Senior Analyst, Manager Research, Morningstar Investment Research India, said.
Further, the ultra-short duration conception -- little than 12 months -- is experiencing bully inflows compared to the medium- to longer-term segments. The conception has seen inflow of Rs 7,054 crore.
Investors favoured funds with shorter maturity profiles for impermanent placements, with low-duration funds, firm enslaved funds, and short-duration funds attracting inflows of Rs 5,600 crore, Rs 4,644 crore, and Rs 1,362 crore, respectively.
Additionally, aft 4 consecutive months, banking and PSU funds person seen immense inflows to the tune of Rs 936 crore.
In caller months, anticipation of a complaint chopped has fuelled involvement successful progressive duration strategies, with these funds positioned to payment from imaginable involvement complaint declines.
In October, gilt funds experienced inflow of Rs 1,375 crore, portion long-duration bonds saw Rs 1,117 crore. Inflows into these funds are expected to emergence further erstwhile the complaint easing rhythm begins.
Apart from indebtedness funds, investors pumped successful a grounds Rs 41,887 crore successful equity-oriented communal funds during the period nether reappraisal against an concern of Rs 34,419 crore.
Overall, the communal money manufacture witnessed an inflow of Rs 2.4 lakh crore successful the period nether review, aft an outflow of Rs 71,114 crore successful September. The immense inflow was owed to investments into indebtedness schemes.

TAKE