Debt Funds See ₹25,693 Cr Outflow in Nov Amid Tight Liquidity

• Debt mutual funds saw a net outflow of ₹25,693 crore in November 2025, reversing strong inflows from October.
• The outflows were mainly due to institutional investors withdrawing from liquidity-sensitive categories like overnight and liquid funds amid tighter financial system liquidity.
• Short-duration categories, including ultra-short, low-duration, and money market funds, remained resilient and attracted inflows.
• Longer-duration and rate-sensitive funds stayed weak, with bond yields rising in November due to strong Q2 GDP growth, reducing hopes for near-term rate cuts.

Why It Matters: Debt fund outflows signal tighter liquidity and shifting investor strategies.