Debt mutual funds staged a dramatic turnaround in April, attracting a record Rs 2.47 lakh crore in net inflows after witnessing heavy withdrawals in March, according to data released by the Association of Mutual Funds in India (AMFI). The figure marks the highest-ever monthly inflow into debt-oriented schemes, surpassing the previous record of Rs 1.89 lakh crore set in April 2024.
The sharp reversal comes after debt funds saw net outflows of Rs 2.95 lakh crore in March, a pattern commonly associated with year-end treasury adjustments by corporates and institutional investors. With the new financial year underway, much of that money appears to have returned to short-term fixed-income products used for cash management.
Liquid funds led the surge, drawing Rs 1.65 lakh crore after seeing outflows of Rs 1.35 lakh crore in March. Overnight funds also swung back strongly, recording inflows of Rs 31,420 crore compared with outflows of Rs 40,228 crore in the previous month. Money market funds added another Rs 20,643 crore.
While debt funds stole the spotlight, equity mutual funds continued to attract steady retail interest, though inflows moderated slightly. Actively managed equity schemes garnered Rs 38,440 crore in April, down from Rs 40,450 crore in March. Flexi-cap funds remained the most popular category, attracting Rs 10,148 crore, followed by small-cap funds at Rs 6,886 crore and mid-cap funds at Rs 6,551 crore. Sectoral and thematic funds, by contrast, saw inflows decline to Rs 1,949 crore from Rs 2,699 crore in March.
Overall, the mutual fund industry recorded net inflows of about Rs 3.22 lakh crore in April, significantly higher than the previous month.
ALSO READ: April AMFI Data: Net Inflows Increase By 25%; Active Equity Mutual Fund Inflows Dip By 5%
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