The year 2020 had one silver lining —investors with diversified portfolios registered handsome gains. Among debt funds, longer-duration funds outperformed; among equity funds, mid- and small-cap funds fared better. For 2021, in keeping with the law of mean reversion, analysts have modest return expectations from last year’s outperformers. Debt funds: Be wary of credit risk In 2020, longer-duration debt funds gave good returns as interest rates fell. Returns from shorter-duration funds were muted. Credit risk funds underperformed.
Nine big financial changes that you must watch out for in October
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