I want to invest about Rs 1 lakh a month in non-equity funds. Would it be a good idea to invest in some of these funds - Birla Sun Life Dynamic Bond, SBI Dynamic Bond, Pramerica Credit Opportunities and Tata Floater? Which one would you suggest?
-Anup Kumar Datta
A risk-averse investor looking at just the fixed income universe should consider only dynamic bond funds at this point. Given the kind of economic weather prevailing today, you shouldn’t invest in the credit opportunities fund. Also avoid the floater fund, which is almost like a liquid fund and will only earn modest returns in the coming times. Dynamic bond funds look the most appropriate choice today. They have the potential to derive optimum returns as well as capitalize on opportunities arising out of changes in the rate outlook.
This article was originally published on May 21, 2012.
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