Performance Update

Plenty of fight left

Rising rates may have stabbed L&T Short Term Bond Fund's 1- to 3-year bond strategy. But the fund manager expects the bruises to heal soon.

Rising rates may have stabbed L&T Short Term Bond Fund's 1- to 3-year bond strategy. But the fund manager expects the bruises to heal soon.

A judicious mix of high-quality debt and money-market instruments, this fund sports a clear and consistent approach. On the duration front, the fund mostly sticks to up to three-year bonds and usually stays away from bonds with maturity beyond five years. "This practice has led to lower volatility in returns over a longer period of time versus its peers," said Shriram Ramanathan, who manages the fund along with Jalpan Shah and is also the head of fixed income at L&T Mutual Fund. We believe the fund's approach suits conservative investors. That's because it sticks to superior quality bonds even when peers hop on to lower-rated bonds during favourable market cycles to chase higher returns. This conservatism may sometimes keep

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