Debt mutual fund inflows surge in January: Is it the right time to invest?
In a turnaround, debt mutual funds experienced an inflow of ₹76,468.96 crore in January 2024, marking a significant shift from ₹75,559.93 crore outflow witnessed in December.
The latest data from the Association of Mutual Funds in India (AMFI) reveals a positive trend for the debt fund segment.
Industry experts believe that time is ripe to take exposure into some debt categories as the interest rate scenario eases across the globe.
Liquid funds emerged as the frontrunners, recording the highest inflows at ₹49,467.67 crore, a stark contrast to the ₹9,675.27 crore outflow recorded in December.
Money market funds followed closely behind, registering the second-highest inflows at around ₹10,651.05 crore. This renewed interest in money market funds suggests a growing preference for safer investment options, aligning with the broader market sentiment.
Gilt funds, that investment advisors are saying are well placed at the moment, saw inflows close to ₹500 crore in January.
Industry experts attribute this positive shift to various factors, including improved economic indicators, easing concerns over interest rates, and a general appetite for debt instruments in a stabilizing market environment.
Investors seem to be recalibrating their portfolios, finding value in certain debt fund categories after a period of cautious retreat.
The funds saw a spike in returns after the recent slump in yields post the Interim Budget.
