India's mutual fund sector is witnessing a surge in liquid fund inflows, reaching over ₹1.4 lakh crore in July-August 2025. This trend is driven by corporate treasuries, high-net-worth individuals, and retail investors seeking low-risk, high-liquidity options amid volatile equity markets and global economic uncertainties. The Reserve Bank of India's interest rate moderation has further bolstered investor confidence, making liquid funds, with returns between 6.5 to 7 percent, a preferred choice over fixed deposits for managing excess cash.