Debt funds see Rs 1.07 lakh crore net inflows in July, led by liquid, money market categories

Debt-oriented mutual funds posted a sharp recovery in July, reversing the outflows recorded in the previous month. Income/debt-oriented schemes saw net inflows of Rs 1.07 lakh crore in July, compared with an outflow of  Rs 1,711 crore in June and inflows of Rs 1.20 lakh crore in the year-ago period, data released by AMFI on August 11 shows.

Liquid and money market funds drove the turnaround. Liquid funds recorded Rs 39,355 crore in net inflows, swinging from an outflow of  Rs 25,196 crore in June, though lower than the  Rs 70,061 crore inflows in July 2024.

Money market funds saw inflows of Rs 44,574 crore, up from  Rs 9,484 crore in June and Rs 28,738 crore a year earlier.

Overnight funds reported Rs 8,866 crore in inflows in July against an outflow of Rs 8,154 crore in June and inflows of Rs 4,452 crore in the year-ago period.

Also read: AMFI July data: SIP flows increase to all-time high of Rs 28,464 crore; SIP stoppage ratio at 63%

Low duration funds attracted Rs 9,766 crore, up from Rs 3,136 crore in June and Rs 1,902 crore last year. Ultra-short duration funds got Rs 2,277 crore, down from  Rs 2,944 crore in June and Rs 8,207 crore in the previous year.

The category’s total AUM rose to Rs 18.76 lakh crore in July, an increase of  Rs 1.25 lakh crore from June and Rs 3.31 lakh crore year-on-year. The jump reflects higher institutional allocations and renewed investor preference for short-term debt instruments amid stable interest rate expectations.