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Prefer short-duration bond funds to credit-risk funds for safer investment

However, SEBI does not specify the credit profile of the funds

Prefer short-duration bond funds to credit-risk funds for safer investment
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Sarbajeet K Sen
In the past year, a series of defaults, downgrades and delayed payments have left debt fund investors scarred. But debt funds do provide some amount of stability to a portfolio. And bonds funds investing in private sector corporate bonds could offer good risk-reward to investors who are keen to take some measured exposure.
 
But you should have a clear strategy. Short-duration funds could be a good investment bet at this point. Simply put, here fund managers invest in bonds that mature in one to three years.  In these schemes, the impact of interest rates movement is not much. In

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First Published: Jul 31 2019 | 9:51 PM IST

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