The sharp spike in inflation can come to haunt long duration funds, with mutual fund experts cautioning that it can weigh on returns delivered by such schemes. “If inflation remains sticky, the room for rates moving down dramatically will reduce.
This means holding a long duration fund will not make much sense from a risk-reward perspective,” said Kaustubh Belapurkar, director (fund research) at Morningstar Investment. On Monday, the data released by the National Statistical Office showed that retail inflation had risen to a five and a half year high of 7.35 per cent ...
