MUMBAI: Fixed income funds may be losing some of their sheen, based on the belief that rate cuts here may depend to a large extent on the fate of inflation, a revival of rate increase by the US Fed , and tapering by the ECB . Income funds predominantly invest in corporate bonds. "Fixed income schemes have now lost the investor flavour significantly. "It was prudent to invest in fixed income mutual fund schemes at least three-four years from the end-cycle. significantly," he said.Liquid/money market schemes, which are popular among institutions to gain in the short term, too have seen fund contraction.During September, investors invested Rs 19,630 crore compared with Rs 1.34 lakh crore in April.

Source: Economic Times October 17, 2016 13:41 UTC