Debt funds continue to look attractive in 2017

The funds delivered high returns from 7.5% to as high as 18% last year

After a robust performance of debt funds in 2016, with returns ranging anywhere from 7.5% to as high as 18%, the outlook for debt mutual funds continues to look attractive in 2017, say fund managers. Though the expected returns may not match last year's, investors can expect reasonable returns in higher single digit.

Given the expectations that interest rates will keep moving down this year and inflation will remain benign at or less than 5%, fund managers say there is still steam left in debt funds. Some of the debt funds they recommend include corporate debt funds, duration bond funds