Debt mutual funds receive strong inflows in July after two months of continuous outflow. Is investor confidence back?

Debt mutual funds witnessed a sharp recovery in July 2025 with inflows of Rs 1.06 lakh crore, led by money market and liquid funds. AUM surged to Rs 18.76 lakh crore, marking one of FY25s strongest months. Investor preference remains skewed towards short-duration instruments amid rate uncertainty.