Given the expectations of a further rise in YTMs, fund managers, investment advisors and MF distributors are advicing investors to stick to shorter horizon funds. | Image: iStock
The yield to maturity (YTM) of debt mutual fund (MF) schemes -- an indication of future returns -- has stabilised in the past couple of months after a steep rise between July and September 2022, shows Value Research data. Fund managers and advisors believe though YTMs have steadied, their peak is still a few basis points away, especially for funds that have a longer horizon.
"YTMs have risen for some categories in the past couple of months, while being stable for others. They can still go up but not much,” said Parijat Agrawal, head-fixed income, Union Asset Management Company.
As of November-end, YTMs of all debt fund categories, except credit risk funds and overnight funds, were in a narrow range
First Published: Dec 26 2022 | 7:40 PM IST