Last Update: March 13, 2023, 5:20 PM IST
SIP contribution every month from October 2022 has been over Rs 13,000 crore on an average.
Earlier, debt funds saw a net infusion of Rs 3,668 crore in November 2022, showed Association of Mutual Funds in India (AMFI) data.
Mutual funds focused on investing in fixed-income securities saw outflows of Rs 13,815 crore in February, the third consecutive month of withdrawals despite expectations of nearing the end of the rate hike cycle.
In comparison, there was a withdrawal of Rs 10,316 crore from such funds in January and Rs 21,947 crore in December.
Earlier, debt funds saw a net infusion of Rs 3,668 crore in November 2022, showed Association of Mutual Funds in India (AMFI) data.
Of the 16 fixed-income or debt fund categories, nine saw net outflows during the month under review and the remaining six saw inflows. Heavy withdrawals were seen from liquid funds. Overall, there was an outflow of Rs 13,815 crore from debt funds during the period under review.
Read also: Mutual Funds: What is Systematic Transfer Plan and how does it work?
“With the central bank’s focus on reducing inflation, monetary policy is designed to ensure a deflationary process. Despite expectations of a February rate hike around 25 basis points, largely due to a moderation around inflation, investors are yet to see the evidence. This also prompts investors to look at shorter duration funds as they offer less volatility, said Kavita Krishnan, Senior Analyst-Manager Research, Morningstar India.
Besides, increasing focus on other asset classes and opening up of new avenues has also led investors to prefer these over the debt fund categories, he added.
He further said, the Indian market continues to grow, and a change in the rate hike cycle could bring investors back to debt funds.
Within the debt category, liquid funds saw a significant outflow of Rs 11,304 crore in this category, followed by ultra-short duration funds (Rs 2,430 crore), low duration ratio funds (Rs 1,904 crore) and floater funds (Rs 1,665 crore). number comes.
In terms of inflows, the overnight fund category saw the largest inflow of Rs 2,946 crore, followed by corporate bonds (Rs 662 crore), dynamic (Rs 502 crore) and gilt funds (Rs 451 crore).
Liquid, ultrashort-term, money market and overnight fund categories make up a major portion of the total assets (around 50 per cent) within the debt fund category.
Given their significant contribution, even a slight change in the amount of flux in percentage terms can make a huge difference to the overall flux within the category.
Equity mutual funds, on the other hand, attracted Rs 15,685 crore in February, making it the highest net inflow in nine months, driven by inflows from SIPs (Systematic Investment Plans).
SIP contribution every month from October 2022 has been over Rs 13,000 crore on an average.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)