If interest rates are likely to come down, will returns from debt mutual funds also fall? What kind of debt funds should I invest in?
Kamal Saldhana, Pune
Ideally your investments should be based on your financial goal and what you seek your investments to do for you. Blindly going in for a fund because of economic changes is ill-advised. In the current scenario, short and medium-duration debt funds are likely to offer better risk-adjusted returns and could be considered for fresh investments. Make sure that you know how long you need to stay invested in these types of funds and the investment risk associated when putting money in these.
