New Delhi, March 31 -- When investors move money into debt mutual funds, they often assume all such funds work the same way-but they don't. Different debt funds adopt different investment strategies depending on the fund manager's market view.
In a recent interview with Mint, Sahil Kapoor, head-products and market strategist at DSP Mutual Fund, said duration strategies look appealing right now because of wide spreads between the 10-year G-sec yield and the repo rate.
So, what exactly is a duration strategy? And what other strategies work in the bond market? Here's a closer look.
Duration funds take a directional call on interest rates. If the fund manager expects rates to fall, he increases exposure to longer-dated bonds.
The logic re...
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