New Delhi, Nov. 13 -- Investors looking to invest in debt mutual funds may want to focus on short-duration strategies as interest rates are expected to rise further. Axis Mutual Fund expects the Reserve Bank of India (RBI) to tighten monetary policy by another 50-75 basis points in the near term. Against this backdrop, the fund house favours high-quality corporate bonds with three-to-five-year maturities and short-duration, accrual-focused investment strategies.

In its November 2026 fixed-income outlook, Axis Mutual Fund said bond yields could remain volatile over the next three to six months as markets respond to domestic and global developments. It expects the operative policy rate to move towards 6-6.25%, although the pace of further ...