Investors should stagger entry into medium-to long-duration debt funds

Take limited exposure, counter risk of possible decline in NAV with adequate investment horizon

Sarbajeet K Sen Mumbai
funds, investments, stocks, valuations, returns, investors, MFs, mutual funds, savings

Listen to This Article

The Reserve Bank of India (RBI) halted its rate hike cycle in its April monetary policy review, prompting investors to anticipate a downward turn in interest rates. According to data on interest-rate swaps, it appears that interest rates may begin to decline in the early part of next year. The International Monetary Fund (IMF) has also weighed in, stating that the recent surge in real interest rates is likely to be transitory.
“The effect of interest rate hikes will manifest in demand moderation, leading to lower inflation expectations. Inflation readings will come down gradually, validating the RBI's decision to maintain status quo on repo rate. In the coming months, bond market yields are likely to be range-bound with a downward bias,” says Sandeep Bagla, chief executive officer (CEO), TRUST Mutual Fund.
Debt funds to gain

Fixed-income investors with the requisite risk appetite are looking forwa

Also Read

Debt mutual funds log Rs 40K-crore inflow before tax tweak cut-off

Park funds into debt schemes as yields have turned attractive: Experts

ICICI Prudential Equity & Debt Fund: An outperformer in hybrid category

Debt fund investors' aim should be capital protection: Sandeep Yadav

Gold, debt funds, insurance: What to do with your investments in FY24

There's action in passive funds, build your core equity portfolio with them

Start locking into best available FD rates; invest across tenures

Balance yield with rating when choosing a bond, be aware of liquidity risk

Gold ETFs acquire patina of 4-year low investment in FY23, shows data

Convenient and economical: Why car leasing is catching up in India

First Published: Apr 20 2023 | 7:27 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to