Investment Options for Longer Term Fixed Income
3. Long-Term Debt Funds
Weighing in on the various long term debt funds is a complicated affair. Multiple factors of where the country’s metrics are headed have to be estimated. The most current metric one has at hand is the prevailing interest rate.
The RBI has not reduced interest rates due to the inflation and expects the govt to use policy to promote economic growth.
"Given that there is still a fair bit of uncertainty on the (interest rate movement) front, investors would do well to adopt a cautious stance on long-term bond funds for now," advises Subramanian, Research Analyst, from Morningstar India as quoted by The Economic Times.
For investors knowledgeable about the market, investing in debt instruments across a range of yields over a range of products including FDs, corporate bonds and debt funds is also recommended by experts.
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