Debt fund outlook 2013

Viewed 1214

How do you see performance of debt funds in next one year or so especially SBI Dynamic bond & Kotak Gilt investment plan regular? I expect return of around 10% with double indexation benefit by April 2014, your thoughts please!

Thanks in advance

1 Answers

In general, I can say that debt funds are expected to perform better than the original coupon rate because the interest rates are on a declining trend and when the interest rate decreases, bond prices rises and so is the case with debt funds which invests in bonds. However, gilt funds might not get much effect of it Mayank Gupta www.ninemilliondollars.com

Related