Debt fund inflows plunge nearly 44% in February
Debt mutual funds in India took a hit last month, with net inflows dropping nearly 44% compared to January, down to ₹42,106 crore from ₹74,827 crore.
This follows December's major outflow and a sharp January rebound, underscoring how quickly flows can swing.
Short-duration options dominate
Most investors played it safe by sticking with short-duration options.
Liquid funds saw the largest inflows, while overnight funds experienced outflows, and corporate bond funds posted outflows, while longer-duration categories remained under pressure, reflecting a cautious investor stance prioritizing liquidity, carry and capital stability.
Interest rate outlook uncertainty drives cautious investor sentiment
According to Nehal Meshram from Morningstar, this shift isn't about chasing higher returns—it's more about keeping things steady until there's clearer guidance on where interest rates are headed.
For now, most folks seem happy parking their money where it feels less risky.