New Delhi, May 24 -- Debt mutual funds experienced a robust 20.5% surge in their assets under management (AUM) during the financial year 2024-25 (FY25), signaling renewed investor confidence in fixed-income instruments amid evolving macroeconomic conditions. According to data released by the Association of Mutual Funds in India (AMFI), the AUM of debt-oriented schemes expanded significantly, rising from Rs.12.62 lakh crore in March 2024 to Rs.15.21 lakh crore by the end of March 2025.

Additionally, with the Reserve Bank of India maintaining a relatively stable monetary policy stance through much of the year, longer-duration debt instruments became more attractive, leading to higher inflows into categories like corporate bond funds, gilt ...