Does higher duration risk generate higher returns in debt mutual funds?5 min read 27 Sep 2022, 10:56 PM IST
To generate a higher return, the timing of entry and exit into long-term debt funds matters
When we talk about risk and returns, the generally accepted norm suggests that returns increase as one goes up the risk curve. However, this doesn’t seem to stand true for all types of investments. Ravi Saraogi, a Sebi-registered investment advisor and co-founder of Samasthiti Advisors says, “Duration risk is not the way to generate higher returns in debt funds".
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