Debt mutual fund inflows in April at a two-decade high

Investors are seeking lower-risk options to ride out the market volatility and to rebalance their portfolios

- Srushti Vaidya

Investors pumped money into debt mutual funds in April as they sought lower-risk options to ride out the market volatility and to rebalance their portfolios at the start of the financial year, taking net inflows into these funds to the highest in over two decades.

Net inflows into debt-oriented open-ended mutual funds were at ₹2.19 trillion in April, which was the highest since January 2005, from when the data is available. The net inflows saw a sharp reversal from March, when debt-oriented schemes had outflows of ₹2.02 trillion.