DRIVEN by investments in liquid schemes as also banking and PSU funds, debt mutual funds (MFs) saw an inflow of Rs 1.1 lakh crore in three months ended June 2020 after witnessing massive redemptions in the preceding quarter.
Most individual categories that invest in fixed-income securities, or debt funds, saw inflows. However, credit risk, overnight, ultra-short duration, medium duration and dynamic bond funds saw withdrawals. The positive inflow pushed the asset base of debt mutual funds to Rs 11.63 lakh crore at June-end from Rs 11.5 lakh crore at the end of March, according to data with Association of Mutual Funds on India (AMFI). As per the data, inflows into debt mutual funds were at Rs 1.1 lakh crore in the three months ended June, compared to outflows of Rs 1.13 lakh crore in the January-March quarter. Investment into such funds was at Rs 19,690 crore during the quarter ended June 2019.