Debt mutual funds log Rs 40K-crore inflow before tax tweak cut-off

Investors snap up popular medium- to longer-duration debt funds to lock in higher returns

After a prolonged spell of outflows and some bad news on the tax front, debt funds had something to cheer for in the last week of the financial year 2023, which ended on March 31. Investors poured in about Rs 40,000 crore into popular medium- to longer-duration debt funds between March 27 and 31 — the last five days of the month —according to an analysis by Value Research, a firm that maintains a mutual fund database.

The spurt in demand was driven by a rush among investors to lock in higher returns in longer-duration debt funds before the change in