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Article: Life And Debt Returns from debt funds-which manage nearly four times more money than equity funds-have languished in the past one year. And 2006 is not likely to be different. But don't shift out as yet.
- Article from:
- India Today
- Article date:
- December 5, 2005
- Author:
CopyrightCopyright 2005 India Today. Provided by ProQuest LLC. (Hide copyright information)
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It is often said that the stock markets and the bond markets are
inversely related. Nowhere was the regression more evident this year
than in the Indian financial markets. While equity funds soared to
dizzying heights in the past one year, the performance of debt funds
was rather lacklustre. Rising interest rates and ample liquidity in
the short-term money market combined to keep the average yield from
debt funds at 6.5 per cent in the past 12 months. That's less than
the 8 per cent return fixed-income instruments like NSCs and post
office deposits offer to investors. And if you take into account the
4.5 per cent consumer price inflation in the past one year, an
investor in the average debt ...