"Instead of long-dated gilts, investors should look at short-term bonds"
R.Sivakumar, Head - Fixed Income, Axis Mutual Fund, talks about the Reserve Bank of India's decision to maintain status quo in repo rates and how the next year will pan out.
- Mar 4, 2017,
- Updated Mar 9, 2017 12:41 PM IST
The trend is definitely changing. The big trigger is making of savings and PF rates market-linked. That's when people realise that there is a market risk element in other products as well, and not just debt funds. The MF industry has also done a good job in creating product structures that are more relevant to retail investors. As MFs keep delivering superior risk-adjusted returns, more and more investors will be willing to give MFs a chance. This is the same process we have seen happen in equities as well.
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The trend is definitely changing. The big trigger is making of savings and PF rates market-linked. That's when people realise that there is a market risk element in other products as well, and not just debt funds. The MF industry has also done a good job in creating product structures that are more relevant to retail investors. As MFs keep delivering superior risk-adjusted returns, more and more investors will be willing to give MFs a chance. This is the same process we have seen happen in equities as well.
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