Debt funds see inflow of over Rs 94,000 cr in Dec qtr on fund infusion in liquid funds
Mutual funds focused on investing in fixed-income securities saw an inflow of over Rs 94,000 crore in three months ended December 2019, driven by infusion in liquid and overnight funds.
This comes following an outflow of Rs 5,061 crore in September quarter and fund infusion to the tune of Rs 19,691 crore in June quarter, according to a report by Morningstar.
It is interesting to note that half of the total inflows in the fixed- income segment came through overnight and liquid funds, where most of the institutional money is parked.
Liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon, witnessed flows amounting to Rs 28,983 crore during the quarter under review.
The segment had witnessed an outflow of Rs 15,862 crore in September quarter, typically due to advance tax payment requirements.
In addition, overnight funds, which invest in securities with maturity of one day, received inflows of about Rs 17,529 .