INVESTING IN DEBT MARKET AMID VOLATILE YIELDS

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EP699 – Investing in debt market amid volatile yields | The Money Show
14 JULY 2021 07:12 IST | ET NOW | 19 MIN 18 SEC

Debt mutual fund inflows eased in June after the outflows in previous months. As yields continue to be volatile, how should one go about investing in the debt market? Akhil Mittal, senior fund manager of Tata Mutual Fund advises investors to reduce their exposure to long-term debt funds as the uncertainty looms large over the economy due to pandemics. A short-term debt fund is a way to go, for now, says Akhil as RBI is likely to remain accommodative in the near term and the interest rates will remain range-bound. As per Morningstar report, Credit Risk Funds have given the robust return of 5.2% in a year followed by short duration funds 4.2% & Gilt funds, while Long-term fund returns remained muted.