 "Returns of long-duration debt funds looking attractive: Should you invest?")
Returns of long-duration debt funds are looking attractive currently. They have given a return of 13.79 per cent over the past year. These funds invest in papers having very long maturity, which tend to be most sensitive to rate changes. Interest rates have been declining in India. The Reserve Bank of India has cut the benchmark repo rate three times in a row. Long-duration debt funds have benefited from this development.
Nonetheless, retail investors should avoid these funds. When interest rates begin to climb, investors could see negative returns in them. They should avoid such volatile products in their debt portfolio.
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