Debt mutual funds received an inflow of Rs 1.59 lakh crore in October after witnessing an outflow for two consecutive months. Market experts say that the turnaround was largely driven by institutional investors who redeployed surplus cash after the quarter-end outflows observed in the previous month. “Debt oriented funds witnessed a sharp recovery in October 2025, registering net inflows of INR 1.60 lakh crore. The turnaround was largely driven by robust inflows into liquid and overnight funds, as institutional investors redeployed surplus cash after the quarter-end outflows observed in the previous month,” said Nehal Meshram, Senior Analyst, Morningstar Investment Research India.