Give your fund manager time to ride out current volatility

If your dynamic bond fund manager is still maintaining a high average maturity despite the recent spike in interest rates, it is because he expects rates to ease

Currently, dynamic bond funds are displaying wide divergence in their average maturity, in the range of 1.60-13.52 years. With the benchmark 10-year government bond (G-sec) yield having touched a high of 7.19 per cent recently (compared to 6.41 per cent on July 24), one would expect managers of dynamic bond funds to reduce the duration of their funds. But many have chosen not to do so. Experts say that provided they had chosen their fund carefully, investors should trust their fund manager to negotiate this period of volatility.  

A variety of factors have contributed to the spike in G-sec