Key Insights for Investors: 7 Debt Mutual Funds Categories Experience Outflow in November
7 Debt Funds experienced a fall in inflow of 92% at Rs.12915 crore in November as compared to Rs.1.57 lakh crore in October. In November, 7 debt mutual fund categories experienced outflows.
Liquid Funds:
Liquid funds are a type of mutual fund that invests in money market instruments or debts with a maturity period of less than 91 days. Liquid funds experienced the highest outflow of Rs.1,778 crore in November, and in October there was an inflow of Rs.83,863 crore.
Short-Duration Funds:
These funds invest in short-term debts and money market securities. The short-duration funds faced an outflow of Rs.454 crore in November and saw an inflow in October of Rs.1,362 crore.
Floater Funds:
It is a type of debt mutual fund that invests in securities and bonds with a rate of interest that fluctuates on the basis of market conditions.
Floater Funds experienced an outflow of Rs.342 crore in November. In October, the inflow was Rs.152 crore.
Banking and PSU Funds:
This fund is also a type of debt fund that invests 80% of its assets in debt instruments that are issued by banks and PSUs (public sector undertakings).
The banking and PSU funds experienced an outflow of Rs.259 crore in November, and in October there was an inflow of Rs.936 crore.
Medium to Long Duration Funds:
Medium to long-duration funds are debt funds that give loans to corporations with a lending period of 4 to 7 years. These funds are riskier than the short-duration funds because of their long landing horizon.
Medium to Long Duration Funds experienced an outflow of Rs.243 crore in November, and in October there was an inflow of Rs.99 crore.
Medium-Duration Funds:
Medium-duration funds invest in financial instruments and bonds with a maturity period of three to seven years.
Medium-duration funds experienced an outflow of Rs.201 crore in November; in October, the inflow was Rs.149 crore.
Credit Risk Funds:
It is a type of mutual fund that invests in corporate bonds with lower credit ratings. Credit risk funds experienced an outflow of Rs.195 crore in November, and in October there was an inflow of Rs.357 crore.
