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Longer-horizon debt funds bounce back in 2023 as bond yields soften

Actively managed debt funds with the flexibility to go long on duration made a strong comeback on the returns chart in 2023, thanks to softening bond yields.

The average one-year returns of floater, long-duration, gilt, and dynamic bond funds, which ranged between 2.3 per cent and 4.5 per cent at the end of 2022, now stand at over 7.2 per cent, with some schemes delivering over 8.5 per cent, according to data from Value Research.

Debt fund returns are inversely related to yields of underlying investments, meaning a decline in yields is positive for funds. ....

Uttam Ghosh Rediff , Anuj Tagra , Murthy Nagarajan , Sandeep Yadav , Lakshmi Iyer , Joydeep Sen , Kotak Gilt Fund , Prudential Mutual Fund , Value Research , Strategic Bond Fund , Jp Morgan , Kotak Alternate Asset , Reserve Bank , Mutual Fund , Gilt Fund , Bond Fund , Tata Asset , Business News , Usiness News India , Ndia Business News , Ndian Economy News , Ndian Financial News ,