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    Personal Finance | Why a roll-down strategy of bond funds helps reduce, but not eliminate, interest rate volatility

    A roll-down strategy in a bond fund entails that debt funds bring down their maturity consistently and gradually. But that does not eliminate interest rate risks

    Nikhil Walavalkar
    November 25, 2020 / 10:11 AM IST
    Personal Finance | Why a roll-down strategy of bond funds helps reduce, but not eliminate, interest rate volatility

    For many investors bond funds have turned a complicated choice in the last couple of years after credit risks surfaced in many mutual fund schemes. The mess at Franklin Templeton mutual fund showed how credit risk can damage your mutual fund portfolio, if not managed well. While credit risk must be managed well, smart investors and high net worth investors also try and manage the interest rate risk by using a strategy called the roll-down strategy. Here’s how: What is...

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