As interest rates in India have peaked and look unlikely to fall soon, debt mutual fund schemes are attracting investors. Retail holdings of such funds have boomed with a compound annual growth rate of around 35% over the past three years. In contrast, equity schemes have seen inflows of only INR7.2bn ($105,303) over the past two months, while debt fund schemes brought in INR1.5tn over the same period. Liquid funds have attracted INR1.08tn over the past 60 days, with more coming in due to their suitability for short-term requirements.
The fund house aims to be present across asset classes of equity and debt. This goes against many new-age fund houses that come with a differentiated strategy of launching either only equity or debt funds or focusing only on passive funds.