Returns have peaked

When equity markets experience turbulence like it is right now, debt funds' much-needed stability comes to the forefront. For retail investors, a core debt portfolio should emphasise safety, reasonable returns (marginally higher than bank fixed deposits), flexibility to invest across different kinds of bonds and limited exposure to bonds of high maturity. In this regard, the short-duration funds tick all the boxes. These funds' versatility works through the ups and downs of an interest rate cycle. So, if you are a fixed-income investor who wants to keep it simple, this is your go-to bucket. Highlights & trends Performance: These funds continue to offer a one-year return

This article was originally published on December 15, 2024.