Debt MFs see multi-fold surge in July; investors focus on short-term funds

According to the data, mutual funds (MFs) that invest in fixed-income securities saw an inflow of 91,392 crore in July, as compared to Rs 2,862 crore inflow in June

Mutual funds focussed on fixed-income securities witnessed a multi-fold surge in investment to Rs 91,392 crore in July, with short duration funds contributing a major chunk of the infusion.

Barring credit risk funds, all the individual categories that invest in fixed-income securities or debt funds saw inflows, data with the Association of Mutual Funds in India (Amfi) showed.

Given the current interest rate scenario, investors are largely focusing on fixed income categories having a relatively shorter duration profile.

In addition to that, funds with pristine credit quality, especially from categories such as money market, short duration, corporate bond and banking