Planning to invest in debt funds this Diwali? Nilesh Shah and 4 others decode short-term vs long-duration strategies
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Want to invest in debt funds this Diwali?
Are you looking to make an investment in debt funds this Diwali? Here is what these five fund managers decode, as reported by ETWealth.
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Nilesh Shah, MD, Kotak Mahindra AMC
Prefer close-ended performing credit alternative investment funds (AIFs) offering attractive carry, or income from interest payments. These funds can benefit from gaps in corporate credit supply as banks, mutual funds and insurers pull back.
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Bhalchandra Shinde, Fund Manager, Motilal Oswal Mutual Fund
No debt category automatically benefits from a rate-cycle turn. Short-duration funds carry lower interest-rate risk, while long-duration funds are more sensitive to yield movements. Performance depends on inflation, liquidity and whether outcomes differ from market expectations.
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Cheenu Gupta, Senior VP & Fund Manager Equities, HSBC Mutual Fund
At this point, I would lean towards short- to medium-duration funds. They offer reasonable accrual without taking too much interest rate risk. Long-duration funds can become more attractive once the direction of inflation and interest rates is clearer.
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Samir Arora, Founder & Fund Manager, Helios Capital
The founder and fund manager at Helios Capital recommends considering short-term funds for now.