The Economic Times
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| 14 February, 2022, 01:17 PM IST | E-Paper
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    Debt mutual fund investors can look at these 3 types of MFs with rise in interest rates looming

    Don’t get tempted to invest in long-term bond funds now.

    Synopsis

    The RBI has not hiked rates, but experts feel investors should stick to short-term debt funds. RBI has chosen to continue with its thrust on supporting economic recovery while ignoring global monetary tightening and downplaying inflation.

    The RBI took the bond market by surprise in its latest policy review, keeping key interest rates and policy stance unchanged despite multiple headwinds. This helped cool down bond yields which had spiked sharply after the announcement of the Budget on 1 February. The benchmark 10-year government bond yield which had hovered close to 7%—a level last seen more than 30 months ago—is now around 6.7%. What should fixed income investors make of this
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