There are chances that many investors may want to redeem their debt funds fearing fall in their returns. Today mutual funds offer a number of different types of debt funds that cater to the investment requirement across the segment. One, unlike fixed deposits, mutual funds invest in bonds that are tradable. Another way of managing the interest rate volatility is through Dynamic Bond Funds, which can increase or reduce their duration based on the interest rate outlook. DEMYSTIFYING DEBT FUNDSThere are debt funds to match varying investment horizonsDebt funds can also suffer losses like equity fundsKey is to have patience and wait out the volatilityThe writer is head- fixed income, Mirae Asset Global Investments (India)

Source: dna June 01, 2018 00:11 UTC