Debt Mfs

Debt MFs log Rs 1.57 trn inflow in Oct on investment in liquid schemes

Debt-oriented mutual funds witnessed a strong recovery in October, driven by investments in liquid schemes and attracting a net inflow of Rs 1.57 lakh crore after huge redemptions in the previous month. Notably, 14 of 16 debt mutual fund categories reported net inflows during the month, while medium-duration and credit risk funds maintained their trend of consistent outflows. The positive inflow boosted the asset base of debt mutual funds by 11 per cent to Rs 16.64 lakh crore in October-end from Rs 14.97 lakh crore at the end of September, according to data with Association of Mutual Funds on India (Amfi). As per the data, debt mutual funds attracted inflows of Rs 1.57 lakh crore in October, marking a sharp reversal from the outflows of Rs 1.14 lakh crore recorded in September. Within the debt fund, liquid funds led the inflows with Rs 83,863 crore, accounting for 53 per cent of the total, followed by overnight funds and money market funds with Rs 25,784 crore and Rs 25,303 crore,

What are mutual funds and classifications within debt and equity funds?

Debt funds focus on generating income through fixed-income securities, while equity funds aim for capital appreciation by investing in stocks

Debt MFs continue to log outflow, see Rs 1 trillion withdrawal in Sep

Debt-oriented mutual fund schemes witnessed a net withdrawal of Rs 1.01 lakh crore in September, making it the second consecutive month of the outflow, primarily due to advance tax requirements of corporates and correction in equity markets. The segment saw an outflow of Rs 25,873 crore in August. Before this, the debt schemes attracted Rs 61,440 crore in July, data from the Association of Mutual Funds in India (Amfi) showed. The huge outflow has pulled down the assets under management (AUM) of fixed income funds or debt funds to Rs 13.05 lakh crore at the end of September from Rs 14 lakh crore in the preceding month-end. Investor sentiment towards debt investments was largely muted. Barring long duration and gilt fund segments, all the other 14 categories witnessed net outflows. These two categories have been finding favour with investors for some time in anticipation of a change in the interest rate cycle. "Advance tax payments and other quarter-ending accounting and financial ..

360 ONE launches first balanced hybrid scheme in mutual fund space

Fund to maintain a minimum 40 per cent allocation in equity and debt

Backstop fund facility will shield debt MF investors from fire sale

Alongside Corporate Debt Market Development Fund, risk-o-meter and PRCM introduced earlier enhance investor protection

Rebound in yields leads to strong flows into shorter-horizon debt funds

Schemes see strong inflows for two-consecutive months as yields surge, interest rate risks fade

Debt MFs attracts Rs 1.06 trn in FY23, liquid funds account 60% inflow

After massive outflow in March, debt-oriented mutual funds witnessed a sharp turnaround in April as they attracted Rs 1.06 lakh crore with liquid schemes accounting for 60 per cent of the inflow. Barring credit risk and banking and PSU fund categories, all the other segments witnessed net inflows and expectedly, categories having shorter maturity profiles were the biggest beneficiaries, the data with the Association of Mutual Funds in India (Amfi) showed. Going ahead, debt mutual funds are likely to witness a decline in inflows since the tax benefits from indexation are not available from April 1 onwards, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. According to the data, debt mutual funds witnessed an inflow of Rs 1.06 lakh crore in April as compared to a net outflow of Rs 56,884 crore in the preceding month. "While March's outflow was a natural and expected year-end phenomenon. It is difficult to ascertain the reason behind this sudden turn in

HNIs preferring fixed deposits over debt mutual funds, says report

With the debt mutual fund schemes now under the tax ambit, the attractiveness of the product has reduced as High Net worth Individuals (HNIs) are favouring bank fixed deposits (FDs) over such funds, according to a report by Motilal Oswal Financial Services on Thursday. In addition, interest rates on bank deposits have increased significantly over the past one year. This led to HNIs getting inclined towards bank fixed deposits over debt mutual funds, Nitin Aggarwal, Head of BFSI Research at Motilal Oswal Institutional Equities, said. Although HNIs comprehend the advantages of mutual funds over other financial products, past problems in the sector still concern them. The report is based on the inputs of large mutual fund distributors, having an asset under management (AUM) in excess of Rs 1,000 crore, and institutional sales representatives. Going by the report, HNIs have also been preferring PMS (Portfolio Management Schemes) and AIFs (Alternative Investment Funds) as they find mutu

Corporate share in MF AUM sinks below 40% since FY10, shows data

Debt MFs, which receive the bulk of corporate money, have seen sustained outflows for over a year. As a result, debt MF AUM declined 9 per cent in 2022-23 to Rs 11.8 trillion

Debt fund growth option: A smart choice for retirees

A growth scheme not only leads to lower tax payments than the dividend option but also allows any income that is not withdrawn to compound

Balance yield with rating when choosing a bond, be aware of liquidity risk

Invest in individual bonds only if you can analyse and monitor the credit profile of companies

Widening spread opens window for debt MFs to raise credit risk slightly

Difference in G-sec and AA corporate rises to 113 bps from 88 bps in six months

Fund houses ponder ways to cushion tax blow to debt mutual funds

New offerings, lowering costs, debt-plus arbitrage schemes among measures planned

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

Last-minute dash for debt mutual funds before tax advantage vanishes

Target maturity funds, longer-duration schemes see high demand

Sebi paves way for Rs 33,000-crore 'backstop' for debt mutual funds

Sebi told reporters that chosen debt MFs will contribute 2 basis points of their assets under management towards the fund

TMS Ep398: Bharat 6G Mission, earthquake, debt MFs, Wagner Group

What will it take to make Bharat 6G Mission a success? Is India ready for a major earthquake? Should you avoid debt MFs after the tax structure rejig? What is the Wagner Group? All answers here

HNIs & family offices may turn to AIFs after tax blow to debt MFs

Since debt MFs will now be on a par with AIFs on the taxation front, the returns on each will only be a function of yields

Life insurers may gain from debt MFs being taxed at marginal rate

Experts say they may now be slightly better placed as customers looking for tax-free returns under Rs 5 lakh investment a year may now choose their guaranteed products

Finance Bill 2023: Debt MF tax changes to hit fund houses; AMC stocks fall

Industry expects inflows shrinking in the medium to long-horizon debt funds