Medium duration mutual funds have beaten other debt scheme categories over 3 months: Should you invest?

Synopsis

Medium duration funds operate in the middle zone of bond duration. These are required to maintain a portfolio Macaulay duration of 3-4 years. Typically, medium duration funds park bulk of the money in the 3-5 year maturity bucket. So what does this pocket of the bond market bring to the table?

Even as most debt mutual funds have been pegged back by rising bond yields, medium duration funds have been quietly delivering healthy returns. Over the past three months, medium duration debt funds have beaten all other debt fund categories. Even from a one year perspective, these rank only behind credit risk funds on the performance charts. Does this basket offer a good place to park your money now?A rising bond yield environment in the past
BY
ET Bureau
6 mins read, Last Updated:
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