Investors pull out big money from debt funds despite attractive yields

Fund managers and MF distributors expect net inflows to turn positive after completion of rate hike cycle

Mutual Funds, SIPs, Mutual Fund investors

Premium

Money started flowing out of medium-to-long duration debt funds early in the financial year 2022 (Illustration: Binay Sinha)

Abhishek Kumar Mumbai

3 min read Last Updated : Nov 14 2022 | 10:34 PM IST

Money continues to flow out of debt mutual fund (MF) schemes despite the fact that interest rate hikes have been boosting their future return potential. In October alone, investors pulled out over Rs 1,500 crore from each of corporate bond funds and banking & PSU funds, the two of the most-popular debt funds among retail investors.

Fund managers and MF distributors say investments in debt funds are expected to gain pace only after the rate hike cycle is complete and these schemes have better performances to show in the return charts.

"Debt funds have just about stabilised. Money is likely

Topics : Mutual Fund MF investors Mutual funds MFs Interest rate hike PSU bank asset management companies Association of Mutual Funds in India Amfi PSU Banks debt investor Debt MFs

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in