Open-ended debt funds see ₹1L crore inflow in July
What's the story
Open-ended debt mutual funds witnessed a massive recovery in July 2025, with net inflows of ₹1.07 lakh crore. The figure is a stark contrast to the outflow of ₹1,711 crore recorded in June. The data was released by the Association of Mutual Funds in India (AMFI). The recovery was mainly driven by institutional-heavy categories such as Money Market Funds and Liquid Funds.
Fund performance
Money market, liquid funds lead the recovery
Money Market Funds led the recovery with net inflows of ₹44,573 crore in July. This is their highest monthly tally in recent times, taking quarterly inflows to almost ₹97,000 crore. Liquid Funds also saw significant net inflows of ₹39,354 crore during the month. Overnight funds managed to attract ₹8,866 crore after two months of redemptions.
Market impact
New fund offers boost inflows
The inflow surge was also aided by new fund launches. The JioBlackRock Liquid Fund mobilized ₹8,917 crore while the JioBlackRock Money Market Fund collected ₹6,285 crore in July. Other categories, such as Low Duration Funds (₹9,766 crore), Ultra Short Duration Funds (₹2,277 crore), Corporate Bond Funds (₹1,421 crore), and Gilt Funds (₹1,050 crore), also witnessed net inflows during this period.
Market fluctuations
Some categories experience outflows
Despite the overall positive trend, some categories did see outflows. Banking & PSU Funds witnessed redemptions of ₹662 crore while Credit Risk Funds and Long Duration Funds saw outflows of ₹221 crore and ₹416 crore, respectively. Nehal Meshram from Morningstar Investment Research India observed that July was one of the strongest months for fixed-income flows in FY 2025 so far.