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Debt MFs See August Outflows as GST Cuts Spark Caution

Mint New Delhi

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September 11, 2025

The government has pegged the revenue shortfall from GST cuts at ₹48,000 crore a year based on 2023-24 consumption data

- Srushti Vaidya

After a month of strong inflows, debt mutual funds witnessed outflows in August, triggered by concerns over the goods and services tax (GST) cut announced on Independence Day. Investors were on the sidelines during the month, as lower tax revenue for the government could increase government borrowing in the second half of the year and push bond yields higher.

According to the Association of Mutual Funds of India (Amfi) data, debt mutual funds (MFs) recorded outflows of ₹7,879 crore in August, compared to inflows of ₹1.06 trillion in July. Debt MF schemes had seen inflows of ₹45,169.3 crore in August last year.

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