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Park funds into debt schemes as yields have turned attractive: Experts

Tactical bets on longer-duration funds not advisable in the current scenario as rate cuts are not on the horizon

debt funds, mutual funds, investment, markets, regulator
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Illustration: Binay Sinha

Sanjay Kumar Singh
Consumer price index (CPI)-based inflation eased to 6.77 per cent in October compared to 7.41 per cent in September. Debt fund investors need to align their investment strategy with the more benign inflation outlook that is emerging.

Expectations from the RBI

According to experts, peak inflation is probably behind us. CPI-based inflation is likely to trend lower over the next six months.

“We expect the Reserve Bank of India (RBI) to go for a 35-basis-point hike in December and a 25-basis-point hike in February. It will probably take the repo rate to 6.5 per cent and then pause, while maintaining