Be Mindful Of The Yield Levels

Rajeev Radhakrishnan - Head Fixed Income, SBI Mutual Fund, in an interview with Himali Patel, explains given the credit market issues, the investor preference has been towards debt funds with a much conservative approach in credit allocations  Why are a lot of people are getting attracted to debt funds and why it has become more attractive recently? Debt funds have gained inflows based on the trend of softening interest rates and the associated capital gains that investors have made in debt-oriented funds. At the same time, we have seen a distinct trend of softer interest rates on other fixed income investment avenues like bank fixed deposits (FD’s). It must also be emphasised that given the credit market issues, the investor preference has been towards debt funds with a much conservative investment mandate in terms of credit allocations. Any particular reasons why certain...