Debt fund investments surge to multi-year high as flows jump across schemes

With no Fed rate cut in sight, gilt schemes garner Rs 5,200 cr in April, most in at least 5 yrs

Debt mutual fund (MF) schemes, which witnessed relatively muted inflows in the past three years, saw a surge in investor interest in April amid election-induced volatility in the equity markets.

Active debt funds garnered nearly Rs 66,000 crore net inflows in April, most at least since December 2020. Net monthly inflows averaged Rs 1,600 crore in 2023-2024 with April last year witnessing the heaviest monthly inflows worth Rs 37,350 crore.

 The data excludes liquid and overnight schemes as they are mostly used by institutions to park money for a short period, unlike others which are generally used for investment purposes.