Most individual categories that invest in fixed-income securities, or debt funds, saw inflows. However, credit risk, overnight, ultra-short duration, medium duration and dynamic bond funds saw withdrawals.
The positive inflow pushed the asset base of debt mutual funds to Rs 11.63 trillion (Rs 11.63 lakh cr) at June-end from Rs 11.5 trillion (Rs 11.5 lakh cr) at end-March, according to data with Association of Mutual Funds on India (Amfi). As per the data, inflows into debt mutual funds were at Rs 1.1 trillion (Rs 1.1 lakh cr) in the three months ended June, compared to outflows of Rs 1.13 trillion (Rs 1.13 lakh cr) in the Jan-March quarter.
Investment into such funds was at Rs 19,690 crore during the quarter ended June 2019.
Nearly 80 per cent of the total inflows during the quarter under review in the fixed-income segment came through 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 the shorter horizon, witnessed inflows amounting to Rs 86,493 crore during the quarter under review. The segment had witnessed an outflow of Rs 94,180 crore in the March quarter, typically due to advance tax payment requirements. In addition, banking and PSU category, which is considered as a safe option, received inflows of Rs 20,912 crore in the quarter ended June 2020, compared to a withdrawal of Rs 66 crore in the previous three months.