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Are corporate bond funds better than short-duration funds?

Don't get attracted to a marginally higher return by assuming disproportionately higher risk, says Dhirendra Kumar

Can you advise whether a corporate bond fund is better than short-duration funds as they are a bit more secure and have almost similar returns?
- Ashish

Yes, but make sure that you are getting into a fund that has a dominance of highest rated bonds in its portfolio. You just need to be a little careful as right now there is a great risk aversion. So, do not get attracted to a marginally higher return by assuming disproportionately higher risk, as this is not the time to assume risk with fixed income and it is amply reflected in the market behaviour as well.