Generally, overall debt funds are attractive to investors and they prefer that some portion of their portfolio must go to debt funds. However, right now they have several advantages over equity and other fixed-income funds available for investors. Let us take a look at few:

More liquid: Debt funds are comparatively liquid and generally have lower maturity period as compared to other funds.
Uncertainty in stocks: The equity market is very unpredictable these days and investors cannot look forward to anything in the market yet. Therefore, investors are putting their money in the debt market so that they could receive income at fixed intervals and need not to panic due to fluctuations in the market.

Better post-tax returns: Debt funds have better post-tax returns as any profit on the sale of such funds shall be taxed as capital gains. If it is a long-term capital gain, it shall be taxed at 20% with the benefit of indexation. Short-term capital gains are taxed at the income tax slab rate of the investors.

If you look at the market conditions right now, it went down rapidly in the second and third weeks of March 2020. However, soon it recovered in the last week of the month. So, it is a little complicated for investors to make a short-term investment in the current circumstances, rather the market is more suitable for long-term investment. Therefore, short-term investors are shifting to debt funds.