How does higher bond yield affect ultra short term or liquid mutual funds?

Higher bond yield negatively affect ultra short term and liquid funds?

If so what should an investor do ?

Please note that I am asking about ultra short and liquid mutual funds …not asking about long term debt funds etc.

For a retailer this may not have any considerable effect.

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Negligible effect. The NAVs will dip slightly and recover in a few days. Rule of thumb - funds that hold long dated bonds will be hit the most.

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