Debt mutual funds (MFs) continued to register withdrawals in January. Data from the Association of Mutual Funds in India (Amfi) showed net outflows of Rs 10,316 crore. However, money market funds were outliers, registering inflows of Rs 6,460 crore.
Money market funds are those that invest in highly liquid, near-term instruments, such as cash, cash-equivalent securities, and debt securities with short-term maturity. Since these are typically for a horizon of less than a year, industry players say they provide a cushion against volatility.
