With RBI holding on to rates, investors should avoid longer duration funds for the near future
IDFs are investment vehicles for channelising investment to the sector
Investors need to look at the portfolio before investing
Experts recommend credit opportunities funds for the medium- to long-term investor
Medium and long-term funds always face credit risk. If you can't stomach volatility, stick to FDs
Debt-fund managers have drastically cut allocation to G-secs over the past six months
As the rate cut cycle over for now, investors bet largely on funds for duration not exceed 3-4 yrs
The funds delivered high returns from 7.5% to as high as 18% last year
While their returns will continue to be better than fixed deposits, don't go overboard
With RBI choosing to pause, leading to a sharp spike in bond by 20 basis points, retail investors need to re-evaluate their debt fund strategy
Against returns of less than 7 per cent from equities, debt funds made as high as 12 per cent