Mutual funds: What are gilt funds? Is this a good time to invest in them?
Experts anticipate the repo rate cut to happen in the monetary policy committee (MPC) meet in August. And once rate cuts start, lower bond yields will follow. And when bond yields go south, the bond prices would increase proportionately.
With an interest rate cycle likely to go down later this year and the government ramping up its fiscal consolidation path, long term debt mutual funds are set to report higher gains.