Yield-to-maturity in debt mutual funds continue to trend downwards

Wrong end of the curve: YTM of most scheme categories 15-65 bps lower at the end of April

The yield-to-maturity (YTM) in debt mutual funds (MFs) has continued to trend downwards after hitting post-pandemic highs in February.

At the end of April, the YTM of most scheme categories were 15–65 basis points (bps) lower compared to those in February.

MFs are expected to report further moderation in YTM when they release the end-May figures in June.

YTM typically signifies the ballpark estimate of future returns of debt MF schemes.

Experts attribute the moderation in yields to a moderation in inflation and the status quo on repo rates in the Reserve Bank of India policy.

“This month has been