Liquid funds led the recovery with inflows of ₹1.65 lakh crore during the month, while overnight funds received ₹31,420 crore and money market funds attracted ₹20,643 crore.
However, longer-duration debt categories and gilt funds continued to remain under pressure amid interest rate uncertainty.
Industry participants attributed the sharp rebound largely to the redeployment of corporate liquidity after year-end outflows in March.
Archit Doshi, Senior Vice President at PL Asset Management Company, said the inflows reflected “a strategic realignment as corporate treasuries normalize post-financial year-end.”
Juzer Gabajiwala, Director at Ventura, said liquid funds had “come back in action” after the March quarter-end impact, when corporates had withdrawn money for year-end requirements.
“April has witnessed nearly ₹1.65 lakh crore as inflows,” he said, adding that some money may still be waiting on the sidelines for deployment into equities, while short-term yield expectations may also be supporting allocations to liquid categories.
Umesh Sharma, CIO–Debt at The Wealth Company Mutual Fund, said the inflows were concentrated in short-duration categories.
“Debt-oriented schemes saw a sharp rebound in April, driven primarily by strong inflows into liquid, overnight and other short-duration funds,” he said. “However, long-duration and gilt categories continued to see outflows, indicating persistent caution on interest rate risk.”
Vaibhav Chugh, CEO of Abakkus Mutual Fund, said the reversal followed the outflows witnessed in March due to year-end and quarter-end adjustments.
“This normalisation highlights the continued stability in investor behavior across asset classes,” he said.
