Outflows in debt mutual funds continue, Rs 13,815-crore withdrawn in Feb 23

Mutual funds focused on investing in fixed-income securities witnessed an outflow of Rs 13,815 crore in February, making it the third month of withdrawals in a row despite expectations that the rate hike cycle was nearing its end. In comparison, such funds saw an outflow of Rs 10,316 crore in January and Rs 21,947 crore in December.

Prior to that, debt funds saw a net infusion of Rs 3,668 crore in November 2022, data from the Association of Mutual Funds in India (AMFI) showed.

Of the 16 fixed-income or debt fund categories, nine witnessed net outflows during the month under review and the remaining six saw inflow. The heavy withdrawal was seen from liquid funds. Overall, debt funds continued to witness outflows at Rs 13,815 crore during the period under review.