India, Oct. 25 -- Over the past few months, the mutual fund industry exuded confidence, thanks to massive additions to mutual funds folios, including women and first-time investors, and huge inflows. The Assets under Management (AUM) zoomed. However, hidden behind these positive numbers are signs of uncertainty. For example, according to data released by the Association of Mutual Funds in India (AMFI) on October 10, debt mutual funds recorded heavy net outflows of more than Rs 1,00,000 crore in September, a sharp jump from under Rs 8,000 crore in the previous month.

Out of the 16 debt fund segments, 12 reported net outflows during September, with liquid, money market, and ultra-short-duration funds contributing the most to the decline. D...