Did investors continue to sell debt funds in the month of April 2022?

After huge outflows from debt funds in March 2022, the tide turned in April. While debt funds saw inflows of Rs54,757 crore. However, flows into equity funds tapered to Rs.15,890 crore due to investors becoming cautious amidst volatility. The persistent selling by FPIs on Fed hawkishness and rising inflation is also a reason why equity flows have been tepid. SIP flows in April were lower at Rs.11,863 crore but still fairly robust in absolute terms.

There was good news on the SIP folios front which grew 3% to 5.39 crore on a month on month basis. Hybrid funds flows were driven by arbitrage funds while passive funds inflows were robust. In debt funds, the categories with interest rate risk like gild funds, long duration funds, banking/PSU funds and corporate bond funds saw outflows while liquid and money market as well as short duration funds saw smart inflows.