Long duration funds and gilt funds have made a comeback in the last six months. Long duration category was topping the debt mutual funds space with an average return of 8.44 per cent in the last six months, followed by gilt funds (5.70 per cent). Gilt funds with 10-year constant duration was offering 6.60 per cent in the same period. Mutual fund managers say the turnaround was because of the RBI’s dovish monetary stance and rate cuts which brought the bond yields marginally down.
