Does returns on debt funds will get effected if the interest rate of bank go down…?
Depend upon what type of Debt fund you have chosen.
Generally Gilt funds are affected by interest rate movement.
Can u tell two top performing debt funds which are least affected by interest rates?
what about funds in which only bonds are there in portfolio.
In the current scenario interest rates are going down hence this will benefit the Gilt funds…buy long term gilt funds…
There are different types of risk attached…like risk of default…interest rate risk…etc etc…
You need to see your risk appetite then invest.
Moreover Debt funds are far less riskier than equity funds.
Have a look at riskometer before investing.
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Yes, debt funds do get affected by interest rates. The bond yield and interest rates are inversely related. Lower the interest rate, higher is the bond yield and vice versa.
If you look at the interest rate curve in India, it’s on a decline for the last several quarters - and this explains why the debt funds have continued to do well.
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so should I go with the funds in which all bonds are in portfolio or funds with govt security also…?