Long-term debt funds have enjoyed a good run in the past year. Gilt medium and long-term and gilt short-term funds have been the category toppers. Dynamic bond funds - which move across durations - have given a return of 8.7 per cent, while income funds have delivered 8.6 per cent.
"There has been a broad market rally, which has contributed to the performance of long-term funds," says R Sivakumar, head of fixed income at Axis Mutual Fund. Yields of 10-year government bonds fell from 7.73 per cent a year ago to 7.49 per cent.
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