Good time to enter debt funds, say experts

Experts recommend credit opportunities funds for the medium- to long-term investor

Recent reports on the Reserve Bank of India (RBI) Monetary Policy Committee meeting suggest the apex bank is turning less hawkish. The decision to hold on to the repo rate was taken by a five-one vote, and this was the first time there wasn’t a consensus in the six-member committee. Both analysts and fund managers believe a rate cut is likely sooner than later.  

Says A Balasubramanian, chief executive officer, Birla Sun Life Mutual Fund: “Given the high visibility on low inflation, interest rates should see a reduction of 25 basis points by RBI.” A rate cut to support