Key Points
I started buying long-term debt funds last year, when bond yields were close to 7.5%, he says..
Goels investments in long-duration funds have earned close to 9% returns till now, and he expects them to do even better when interest rates decline...
Short-term debt funds have given good returns in the past one year, beating fixed deposits by almost 50-60 basis points..
As per their mandates, mutual funds are required to invest in bonds of certain tenures, but dynamic bond funds have the flexibility to alter the average maturity profile of their portfolios as per the reading of the fund manager..
Long-term bond yields have declined barely 30 basis points in the past year, but that was enough for the best performing long-term bond funds to deliver nearly double-digit returns..
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