Long-term debt funds to gain from rate-cut cycle
Financial Express Pune|December 26, 2024
EQUITIES HAVE OUTPERFORMED debt funds by a long margin for the last few years. But, with India being expected to enter a rate-cut cycle in a couple of months, things have started looking brighter for debt funds.
AKSHATA GORDE

Mumbai, December 25 EQUITIES HAVE OUTPERFORMED debt funds by a long margin for the last few years. But, with India being expected to enter a rate-cut cycle in a couple of months, things have started looking brighter for debt funds. While large economies like the US have already started cutting rates, India is expected to do the same from February.

No wonder, debt fund managers are excited. "The Reserve Bank of India (RBI) may have to cut more than 50 basis points in coming months as the rate-cut cycle is getting delayed and the GDP growth is trending towards 6% levels. Investors should add to their duration portfolio to take advantage of high accrual and expected price appreciation in coming months," said Murthy Nagarajan, head of fixed income at Tata Asset Management.

This story is from the December 26, 2024 edition of Financial Express Pune.

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This story is from the December 26, 2024 edition of Financial Express Pune.

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