Returns levelled off

Short-duration funds are in the middle of a good run. Their one-year returns are ranging between a healthy 7-8 per cent. Throw in the allure of any-time liquidity and they become an attractive fixed-income option. Our recommended funds' performances have been no different. Despite losing indexation benefits and tax advantages, they still stack up well compared to other traditional debt alternatives. That said, this is a good time to temper our expectations, as the returns are likely to stay in this range going forward. Portfolio engineering for rate-cut benefit Six months ago, there was a brewing expectation of rate cuts. Fast-forward to present day, they are yet to happen. But the consensus is that it's a matter of 'when' and not 'if'. Whenever interest rates

This article was originally published on June 15, 2024.