The fall in short-term rates is helping debt schemes (non-liquid schemes) regain some of their sheen, with investors seeing opportunity in short duration schemes. According to mutual fund (MF) players, these schemes have seen an uptick in investor flows in the last couple of months as the Reserve Bank of India’s (RBI’s) recent measures are pointing to a 'dovish' stance.
“The RBI's decision to cut repo rate by 25 basis points last month has led to a fall in short-term rates, which is driving investor flows into the short duration schemes. To add to this, the RBI's recent rupee-dollar swap

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