AMFI puts 13 proposals from mutual fund industry for Union Budget 2025
The Association of Mutual Funds (AMFI) has released a document with 13 proposals from the mutual fund industry to the finance ministry for the upcoming Union Budget 2025.
Driven by investments in liquid schemes, the debt-oriented mutual funds witnessed a strong recovery in October attracting a net inflow of Rs 1.57 trillion after huge redemptions in the previous month.
According to data from the Association of Mutual Funds on India (Amfi), the positive inflow boosted the asset base of debt mutual funds by 11% to Rs 16.64 trillion at October-end from Rs 14.97 trillion at the end of September.
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Notably, 14 of 16 debt mutual fund categories reported net inflows during the month, while medium-duration and credit-risk funds maintained their trend of consistent outflows.
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The data suggested that the debt mutual funds attracted inflows of Rs 1.57 trillion in October, marking a sharp reversal from the outflows of Rs 1.14 trillion recorded in September.
Within the debt fund, liquid funds led the inflows with Rs 83,863 crore, accounting for 53% of the total, followed by overnight funds and money market funds with Rs 25,784 crore and Rs 25,303 crore, respectively.
The ultra-short duration segment, less than 12 months, is experiencing good inflows compared to the medium- to longer-term segments. The segment has seen an inflow of Rs 7,054 crore.
Further, the AMFI data said the investors favoured funds with shorter maturity profiles for temporary placements, with low-duration funds, corporate bond funds, and short-duration funds attracting inflows of Rs 5,600 crore, Rs 4,644 crore, and Rs 1,362 crore, respectively.
After four consecutive months, banking and PSU funds have seen huge inflows to Rs 936 crore.
In October, gilt funds experienced an inflow of Rs 1,375 crore, while long-duration bonds saw Rs 1,117 crore. Inflows into these funds are expected to rise further once the rate-easing cycle begins.
In recent months, anticipation of a rate cut has fuelled interest in active duration strategies, with these funds positioned to benefit from potential interest rate declines.
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