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Debt funds see big outflows in November—here's what went down

Business

Debt mutual funds lost ₹25,693 crore in November 2025, flipping last month's gains.
Most of the money left overnight and liquid funds, while money market and ultra-short-duration funds actually saw some inflows.
Overall, assets under management dropped slightly to ₹19.35 lakh crore.

Why did this happen?

The main reason? Institutions pulled out cash for mid-quarter payments and tax deadlines, plus tighter liquidity made things tougher.
Nehal Meshram from Morningstar pointed to these withdrawals and higher call money rates as key drivers.
Meanwhile, Umesh Sharma from The Wealth Company noticed investors shifting toward safer options like money market funds.

What should investors do now?

Experts suggest sticking with shorter-duration, high-quality debt funds until things settle down.
Even with this dip, average assets in debt mutual funds are up compared to last year—so staying flexible could pay off.