With Reserve Bank of India expecting to maintain status quo on policy for the next five-six months, debt market experts suggest that investors can start taking some exposure in 10-15-year papers at this point.
Will liquid mutual funds stage a comeback?
High government borrowing outlined by Budget 2021 may push interest rates up sometime this year. This helps liquid funds whose returns have hit rock-bottom levels. February 09, 2021 / 10:53 AM IST
Budget 2021 s indication on high government borrowing has already pushed up yields on debt securities up. Interest rates and bond prices move in opposite direction. Experts say that it’s only a matter of time before interest rates increase.
Liquid funds are typically marketed as a means to park sums for the short term to earn a bit more than savings bank accounts. However, currently, leaving money in saving bank accounts is more beneficial. If you invest regularly in liquid funds, or have money lying in there, then here is what you should do.