The central bank recently changed its monetary policy stance from ‘accommodative’ to ‘neutral’, thereby signalling a likely prolonged pause in the rate cut cycle.
For bond fund investors, this has left very little wiggle room for earning good returns from long duration bond funds—those that seek to benefit from softening bond yields.
An alternate route for investors to continue playing the interest rate cycle is through dynamic bond funds, where fund managers actively manage the interest rate risk by constantly trading instruments of different maturities, according to expected movement in interest rates.
Mutual Funds: Small, mid cap funds saw massive surge in folios in March
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