What's the attraction of short-term debt funds?
Jan 06, 04:01

Going by the commentary of the US Federal Reserve, it is clear that the policymakers are going to target inflation in future. The interest rates may continue to rise, even at the cost of hurting growth. Though the American tech majors are announcing layoffs, the central bank may take bit more time to stop hiking interest rates; subsequent rate cuts may take longer than expected.

This may push India's central bank to keep interest rates at elevated levels for some time. Further rate hikes make short-term funds attractive as the accrual income goes up. These funds are overnight funds, liquid funds, ultra short duration funds and money market funds.
Short Term Focus