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What is the story about?
Government bond prices remained firm, supported by strong liquidity conditions in the banking system. The surplus liquidity, along with a decline in the 10-year US Treasury yield and a fall in the five-year overnight index swap (OIS) rate, helped keep bond prices steady.
However, gains were somewhat limited as markets stayed cautious ahead of a large state government bond auction worth nearly ₹486 billion scheduled for today.
As of December 2025, the outstanding assets under management (AUM) of debt mutual fund schemes stood at around ₹79,368 crore, accounting for about 4.34% of the total mutual fund industry AUM.
Liquid funds remained the largest category, with AUM close to ₹5 lakh crore, making up nearly 27% of total debt fund holdings. This highlights investors’ continued preference for safety and liquidity.
Money market funds also saw strong participation, with AUM of around ₹3.18 lakh crore. Low-duration funds held assets worth about ₹1.47 lakh crore, accounting for roughly 8% of total debt fund AUM.
Short-duration funds had AUM of approximately ₹1.37 lakh crore, contributing about 7.5% to the overall debt fund pool.
Read Here | Bonds weaken as states step up borrowing, RBI rolls out credit derivatives reform draft
Medium-duration funds stood at around ₹26,000 crore, while medium-to-long duration funds were lower at about ₹11,000 crore. Long-duration funds had assets of nearly ₹17,000 crore, indicating relatively limited appetite for interest-rate risk.
Dynamic bond funds reported AUM of about ₹36,000 crore.
Corporate bond funds saw some outflows during the period, but total AUM remained sizeable at around ₹2 lakh crore. This category accounted for nearly 11% of the total debt mutual fund market.
Gilt funds stood at about ₹38,000 crore, while credit risk funds were at approximately ₹19,000 crore.
Floater funds held assets worth around ₹52,000 crore, translating to nearly 3% market share.
Infrastructure debt funds showed some improvement in recent months, though AUM remained relatively small at around ₹900 crore.
While more recent data is awaited, the December numbers provide a clear picture of where investor money is currently moving within the debt mutual fund space.
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However, gains were somewhat limited as markets stayed cautious ahead of a large state government bond auction worth nearly ₹486 billion scheduled for today.
As of December 2025, the outstanding assets under management (AUM) of debt mutual fund schemes stood at around ₹79,368 crore, accounting for about 4.34% of the total mutual fund industry AUM.
Liquid funds remained the largest category, with AUM close to ₹5 lakh crore, making up nearly 27% of total debt fund holdings. This highlights investors’ continued preference for safety and liquidity.
Money market funds also saw strong participation, with AUM of around ₹3.18 lakh crore. Low-duration funds held assets worth about ₹1.47 lakh crore, accounting for roughly 8% of total debt fund AUM.
Short-duration funds had AUM of approximately ₹1.37 lakh crore, contributing about 7.5% to the overall debt fund pool.
Read Here | Bonds weaken as states step up borrowing, RBI rolls out credit derivatives reform draft
Medium-duration funds stood at around ₹26,000 crore, while medium-to-long duration funds were lower at about ₹11,000 crore. Long-duration funds had assets of nearly ₹17,000 crore, indicating relatively limited appetite for interest-rate risk.
Dynamic bond funds reported AUM of about ₹36,000 crore.
Corporate bond funds saw some outflows during the period, but total AUM remained sizeable at around ₹2 lakh crore. This category accounted for nearly 11% of the total debt mutual fund market.
Gilt funds stood at about ₹38,000 crore, while credit risk funds were at approximately ₹19,000 crore.
Floater funds held assets worth around ₹52,000 crore, translating to nearly 3% market share.
Infrastructure debt funds showed some improvement in recent months, though AUM remained relatively small at around ₹900 crore.
While more recent data is awaited, the December numbers provide a clear picture of where investor money is currently moving within the debt mutual fund space.
Live stock market updates—follow our blog
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