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Back in vogue

Overnight, liquid and ultra-short-duration funds have come to the forefront amid a spate of rate hikes. Here's an update on these funds and our recommendations.

Overnight, liquid and ultra-short-duration funds have come to the forefront amid a spate of rate hikes. Here's an update on these funds and our recommendations.

After a relatively uneventful two years, the debt segment is back in vogue. Due to a series of rate hikes since mid-2022, lower-maturity categories like overnight, liquid and ultra-short duration are dominating headlines. Ignore their previous two years' performance; they were delivering lowly returns and hence losing their advantage over a bank savings account. However, next year promises to be better, with return expectations (before factoring in expenses) of 6.13 to 6.98 per cent, which is significantly higher than a regular savings account. What you should do Since these funds are all set to get their mojo back, this is an even better time to put your idle money or emergency cash in these funds. They'll help you earn extra money. Are there a

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