Stay updated with breaking news from Fund Return. Get real-time updates on events, politics, business, and more. Visit us for reliable news and exclusive interviews.
Dynamic bond funds have the freedom to invest across securities and maturities depending on the outlook of the fund manager. So, when the rates go up, the fund manager might bet on short term securities as a rate hike will marginally impact them. When rates start falling, he will invest in long-term instruments to make money.
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years.
ETMutualFunds's best mutual fund SIP portfolios are meant for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets – between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 – while creating these portfolios. Take a look at our recommended portfolios.
Medium to long term funds have a mandate to invest in debt and money market instruments with a duration of four to seven years. These schemes are suitable for debt investors with a long horizon and willingness to take extra risk.
These schemes invest in both short term bonds and very short term instruments. They invest in treasury bills, commercial papers, certificates of deposits and so on to take care of their liquidity needs. They also invest in corporate bonds, government securities, etc.