Hawkish RBI prompts debt mutual funds to reassess 'duration' of schemes

Some fund managers have been bullish on the longer-duration government bonds owing to better demand and end of the rate hike cycle

Debt fund managers are reassessing their strategies after the setback delivered by the Reserve Bank of India (RBI) on Friday.

While most are refraining from any knee-jerk reaction to the central bank’s surprise open market operation (OMO) announcements, they are taking a re-look at the duration of their schemes.

Sandeep Yadav, head of fixed income at DSP Mutual Fund, said it has trimmed the duration of some schemes, considering the hawkish stance by the RBI.

“When things are not in control, it’s prudent to reduce the risk. Recent, the RBI policy has brought an element of surprise and chance in