Debt investors should be well spread within short term debt funds and/or accrual funds with a tail end exposure to long duration funds, says Lakshmi Iyer , CIO - Debt & Head - Products at Kotak AMC in an interview with Shivani Bazaz of ET.com. Edited interview.
The status quo on rates by RBI has disappointed debt fund investors, especially long-term investors. Some investors have incurred losses. What should be their strategy?
While that is true in the near term, it is not true over the intended investment horizons of the various fixed income strategies. Hence it is only prudent that investors stick on to their investment horizons, notwithstanding the near losses. Also, it is imperative to note that these losses are marked to market in nature and hence would recommend to stay invested.
