Also, the dynamic bond category saw modest inflows of Rs 519 crore, after medium to long duration funds (Rs 103 crore) and long duration funds (Rs 61 crore).
Fixed-income mutual funds recorded heavy net outflows of Rs 1.02 lakh crore in September, a reversal from the Rs 7,980 crore redemption seen in the previous month, largely due to substantial institutional withdrawals from liquid and money market funds.
Of the 16 debt fund categories, 12 reported net outflows during the month, with the steepest withdrawals coming from liquid, money market, and ultra-short duration funds, according to data from the Association of Mutual Funds in India (AMFI).
This follows a strong Rs 1.07 lakh crore inflow in July, indicating heightened volatility in debt fund flows over recent months.
Debt MFs See Outflow
The huge outflow has pulled down the assets under management (AUM) of fixed income funds or debt funds by nearly 5 per cent to Rs 17.8 lakh crore at the end of September from Rs 18.71 lakh crore in the preceding month-end.
Of the debt categories, liquid fund category witnessed the steepest outflow of Rs 66,042 crore and similarly, money market funds saw significant redemptions of Rs 17,900 crore. Further, ultra-short duration funds witnessed outflow of Rs 13,606 crore, while low-duration funds also saw net redemptions of Rs 1,253 crore.
In comparison, short-duration funds experienced modest outflows of Rs 2,173 crore, indicating a more measured response within accrual-oriented categories. “These modest outflows suggest that investors remained broadly anchored to shorter-tenor accrual-oriented products, even as overall liquidity tightened toward quarter-end,” Meshram added.
In contrast, overnight funds registered modest positive inflows of Rs 4,279 crore, as few investors temporarily parked money in these instruments amid broader redemptions elsewhere.
On the other hand, equity MFs saw inflows of Rs 30,421 crore in September, marking a 9 per cent drop from Rs 33,430 crore in August and well below July’s all-time high of Rs 42,703 crore. This came as investors turned cautious amid market volatility and global uncertainties.
(With Inputs From PTI)
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