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Flexi Debt Funds

These funds can diversify among debt instruments of various maturities

Are there funds which diversify between debt instruments according to the interest rate outlook? It is not inconvenient for the lay investor to keep switching between funds as interest rates change and the fund manager is at a better position to handle this. Could you please tell if there are such funds?
-    Amit Kher

Yes, there are debt funds that can diversify among debt instruments of various maturities. These funds are generally called as flexi or dynamic debt funds. These funds have a leeway to invest fully either into long-term or short-term securities depending upon the interest rate scenarios. A few good flexi debt funds are Birla Dynamic Bond Fund, Fortis Flexi Debt funds and Kotak Flexi debt fund.

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