Article: Should you exit debt funds.

Byline: Tanvi Varma

Summary: As the global and domestic economies recover, debt funds, which were popular during the downturn, might begin to lose their sheen.

A year ago, the unfolding global economic crisis put equities on the blacklist and real estate out of reach. Debt funds, however, were seen as a hot investment. Credit worries and a slowdown in the US economy were pushing investors to bonds and government securities markets. In fact, in early 2008, we had discussed the resurgence of investor interest in debt funds (The Return of Debt, 6 March 2008).

At the time, domestic as well as global economic indicators showed that interest rates ...

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