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| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
Liquid funds attracted ₹91,5923 crore, followed by money market funds (₹21,915 crore) and overnight funds (₹18,936 crore).
Why did inflows rise?
Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India, said, “This surge follows the quarter-end tax outflows in December, as corporates and institutions redeploy idle cash into short-duration debt instruments for liquidity management. These funds offer minimal interest rate risk and provide quick access to capital, making them ideal for surplus liquidity parking.”
However, the inflows were not broad-based. 11 out of 16 debt mutual fund categories still recorded net outflows.
Investor preference shifts
- Long-duration funds saw modest inflows of ₹201 crore.
- Gilt funds faced outflows of ₹1,359 crore, reversing previous gains.
- Credit risk funds continued to struggle, witnessing outflows of ₹294 crore as investors preferred safer, AAA-rated instruments.
- Floater funds saw outflows of ₹1,129 crore, as the interest rate hike cycle likely peaked, reducing their appeal.
Anand Vardarajan, Chief Business Officer, Tata Asset Management, noted, “Debt ended meaningfully positive at ₹1.28 lakh crore of net flows, led by liquid and ultra-short categories. Medium- to longer-duration funds didn’t find favor, while investors chose to stay liquid and preferred ultra-short duration funds. Yields have been quite attractive, leading to investor interest.”
What’s next?
Investors are prioritising liquidity and flexibility while waiting for clearer signals on interest rates. Short-term debt funds remain the preferred choice amid economic uncertainties, while longer-duration categories struggle for demand.
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