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Debt emerges as better money maker than equity schemes

Against returns of less than 7 per cent from equities, debt funds made as high as 12 per cent

Chandan Kishore Kant  |  Mumbai 

The past year has been one of debt mutual fund schemes, even as equity schemes struggled, with average category returns of under seven per cent. On an average, the returns from debt-related schemes — short-term funds, dynamic bonds or credit opportunities fund — have stood anywhere between seven and as high as 13 per cent over the past year.

It is worth noting that nearly 65 per cent of the total Rs 14 lakh crore of the MF sector’s assets are in the debt category. With benign inflation, and a 75 basis points (bps) cut in interest rate by the Reserve Bank of India (RBI), ...

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First Published: Mon, August 08 2016. 00:34 IST