Debt Fund Investments

Experts see limited scope for further decline in bond yields; interest income to drive returns

The benchmark 10-year yield was at 7.1620% as of 10:00 a.m. IST, following its previous close of 7.1598%

Hybrid MF offering rakes in close to Rs 6,000 crore in FY 2024 so far

Investors should opt for them when rates are expected to climb, not now when they are largely over

This comes even as most fund managers do not foresee rate hikes

New Mutual Fund rules: All existing investments and new investments made in debt MFs before March 31 will not be affected by the proposed mutual fund tax change

Mutual funds focused on investing in fixed-income securities witnessed a net outflow of Rs 32,722 crore in May in the wake of Reserve Bank of India (RBI) stance on monetary policy turning hawkish

Debt fund managers need better due diligence models

Over the past one year, long-duration and gilt funds have given high double-digit returns. Nonetheless, experts do not suggest investing in these categories

However, SEBI does not specify the credit profile of the funds

Go for high quality and low-to-medium-duration funds in your debt portfolio