New Delhi, Sept. 29 -- Debt mutual fund investors may need to reassess where they park their money as interest rates show signs of staying higher for longer. Rising bond yields can put pressure on existing bond prices and, in turn, affect returns from debt funds, particularly those with longer maturities.

Against this backdrop, Axis Mutual Fund, in its report, noted that the US Federal Reserve raised the federal funds rate by 25 basis points to 3.75%-4.00% at its September 2026 FOMC meeting. The move comes after a period of nearly three years in which investors navigated relatively stable or declining interest rates.

More importantly, the Fed's updated projections suggest that this may not be a one-off move, with policymakers signalling...