Debt Funds See Rs 2.19 Lakh Crore Inflow In April as Investor Sentiment Cools On Equities

In April, indebtedness costs knowledgeable a notable displacement successful investor sentiment, pinch a important inflow of Rs 2.19 lakh crore compared to outflows of Rs 2.02 lakh crore successful nan erstwhile month. This activity highlights a increasing penchant for indebtedness instruments arsenic corporates and individuals activity safer finance avenues amidst ongoing marketplace uncertainties. The communal money industry's mean assets nether guidance (AUM) result roseate by 4.2% to Rs 69.50 lakh crore, up from Rs 66.70 lakh crore successful March, driven chiefly by these fixed-income investments. 

The mostly of nan allocation to indebtedness costs was focused connected liquid and liquid-plus strategies, indicating a penchant for short-term placement of costs successful anticipation of early finance opportunities. Specifically, Rs 1.19 lakh crore was added to liquid funds, pinch overnight and money marketplace costs besides attracting important amounts of Rs 23,900 crore and Rs 31,500 crore, respectively. These figures show a deliberate strategy by investors to prioritize liquidity while waiting for much favorable marketplace conditions.

Short-duration indebtedness costs (Returns arsenic of May 2025)

According to nan latest data, Franklin India Short Term Income Plan - Direct Plan has emerged arsenic nan apical performer crossed each timeframes—delivering an astonishing 192.10% return complete 1 year, which besides reflects successful its 3-month and 6-month performance. This figure, however, whitethorn bespeak a one-off gain, money restructuring, aliases guidelines effect and warrants deeper scrutiny.

Next successful statement are DSP Credit Risk Fund - Direct Plan and HSBC Credit Risk Fund - Direct Plan, some of which person delivered awesome short-term gains. DSP's 6-month and 1-year returns stood astatine 17.87% and 23.09%, respectively, while HSBC’s came successful astatine 17.44% and 22.41%.

Other notable names see Aditya Birla Sun Life Credit Risk Fund and Aditya Birla Sun Life Medium Term Plan, which consistently characteristic successful nan apical 5 crossed aggregate timeframes. These costs person benefited from tactical long plays and a favourable in installments environment.

For investors seeking stableness pinch mean returns, these top-performing short long costs coming compelling options. However, it’s captious to measure associated in installments risk, liquidity, and portfolio creation earlier investing.

Equity funds

In contrast, equity schemes witnessed a varied response, pinch flexicap costs receiving Rs 5,542 crore, somewhat down from Rs 5,615 crore successful March. Small-cap and midcap costs besides saw marginal reductions, gathering Rs 4,000 crore and Rs 3,314 crore, respectively. However, sectoral and thematic costs observed a important increase, collecting Rs 2,001 crore compared to only Rs 170 crore successful March.

This displacement suggests a nuanced investor attack towards equities, balancing betwixt stableness and sector-specific opportunities. Arbitrage funds, benefiting from their tax-efficient structure, recorded inflows of Rs 11,790 crore, a stark reversal from nan erstwhile month's outflows. 

Published on: May 10, 2025 3:48 PM IST