Debt mutual funds logged record outflows of Rs 2.9 lakh crore in March, driven by sharp redemptions in overnight funds. Overnight funds saw redemptions of Rs 40,227 crore, followed by money market funds with Rs 29,207 crore outflows and low-duration funds posting Rs 25,227 crore in withdrawals. The figures underline rising investor caution in the debt space.
PSU mutual funds recorded Rs 4,498 crore in outflows in March, a modest improvement from February, per Vallum Capital. Despite solid long-term performance, sector flows were uneven: consumption saw withdrawals, while manufacturing, infrastructure, defence and pharma pulled in fresh money—hinting investors are rotating toward domestic capex themes even as broader sentiment stays cautious.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
