New Delhi, Oct. 10 -- After three consecutive years of net outflows, debt funds witnessed a rebound in FY 2024-25, recording net inflows of Rs.1.38 lakh crore, according to the AMFI Annual Report released in February 2025. This reversal was largely driven by an anticipation of interest rate cuts by the Reserve Bank of India (RBI), particularly after the repo rate was lowered to 6.25 per cent in February 2025, a factor that has increased the appeal of debt instruments. Amidst global developments like interest rate movements and global geopolitical risks, investors are now looking at instruments that offer both stability and liquidity. Among the options, debt funds and hybrid funds are emerging as key components of a balanced portfolio.

In...