Returns of most debt fund categories plummet below 5%, shows data

'Extraordinary scenario' say experts as both, short and long-duration funds give low returns

Most debt fund categories have generated returns of less than 5 per cent over the past year as interest rates have remained low. Of the 17 debt fund categories, 13 have provided returns of less than 5 per cent, while credit risk funds have given the highest returns of 8.29 per cent.
 
Data from Value Research shows that categories such as overnight funds, liquid funds, money market funds, and gilt with 10-year constant duration have provided returns of less than 4 per cent in the period.
 
Joydeep Sen, consultant with Phillip Capital fixed-income desk, says: “The Reserve Bank