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Buying Short-term Debt Funds

Buy short-term debt funds on the basis of interest rate fluctuations only if you have the expertise…

It is generally said that when interest rates are moving up it is better to invest in short term debt funds; what is the right time to buy short-term debt funds?
- Rakesh Raman

Timing the market is neither an art nor science, it is at best a guess which may or may not click. Buying any fund should be driven by the need for the fund in your investment portfolio and not based on trends or market sentiments. You can definitely apply the concept of buy (when the interest rates are at peak) and sell (when the interest rates bottom out) by timing the interest rates if you have the expertise and can read the interest rate movements and scenario well in time.



This article was originally published on March 25, 2011.

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