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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

Debt emerges as better money maker than equity schemes

Thepastyearhasbeenoneofdebtmutualfundschemes,evenasequityschemesstruggled,withaveragecategoryreturnsofundersevenpercent. Onanaverage,thereturnsfromdebt-relatedschemes—short-termfunds,dynamicbondsorcreditopportunitiesfund—havestoodanywherebetweensevenandashighas13percentoverthepastyear.Itisworthnotingthatnearly65percentofthetotalRs14lakhcroreoftheMFsector’sassetsareinthedebtcategory. Withbenigninflation,anda75basispoints(bps)cutininterestratebytheReserveBankofIndia ...