January 29, 2023

In a single day funds, the mutual fund schemes which make investments cash in bonds and treasury devices maturing in in the future, have topped the efficiency charts amongst open-ended debt funds with 1.04 % returns, in keeping with Worth Analysis.

The RBI has raised the repo price by 90 foundation factors and market contributors count on additional price hikes. This has pushed up the yields throughout tenures. No surprise, the marked-to-market losses for many debt funds have suppressed the returns. Since in a single day funds make investments just for a day, there’s little interest-rate threat. These schemes look like finest positioned in a rising rate of interest situation, as short-term parking place for cash.

See also  New limits for international mutual funds to be redemption-based