Debt mutual funds see big December outflows, but it's just a seasonal dip

Business Jan 09, 2026

Indian debt mutual funds saw a huge ₹1.32 lakh crore pulled out in December 2025—a sharp jump from November.
This spike happened mostly because companies and big investors needed cash for year-end tax payments and tidying up their balance sheets.

No long-term worries, say experts

According to Morningstar's Himanshu Srivastava, these outflows are pretty normal for December and don't signal deeper problems with debt funds.
Most categories saw money leaving as investors played it safe, but floater funds actually gained since they help manage risk when interest rates are uncertain.
The good news? Credit conditions stayed steady throughout.