Fresh liquidity measures announced by the RBI have helped bond yields soften, improving returns for debt fund investors. However, rising crude oil prices and tensions in West Asia could keep the possibility of further rate hikes alive. Basant Bafna of Mirae Asset Investment Managers (India) and Devang Shah of Axis AMC believe investors should remain cautious on duration as elevated oil prices and geopolitical tensions may keep rate hike concerns alive. Short-term and corporate bond funds are being preferred, while exposure to long-duration funds can be increased gradually.
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First Published: Jun 9, 2026 3:51 PM IST
