Sure. Also RBI might not cut rates as aggressively as (if) the Fed does, given that our inflation is not that high and economy seems to be pretty strong presently. Wonder if dynamic bond funds have larger %age of LT holdings (chked couple but didn’t find so) and can better potential in this scenario.
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hi Shail, I did allocate 6% of my portfolio to HDFC long duration couple of months back and now sitting at 4.49% absolute return since last 6 months.
With markets being very high i would like to reallocate 6% more from equity to debt. Do you suggest to choose HDFC long duration? I was reading somewhere that constant duration (or something similar sounding) may be a better choice as they adjust debt duration with the interest cycle.
regards
Constant duration funds don’t adjust duration with interest cycle instead they keep it fixed. This allows the investors to choose what duration they wish to allocate to instead of a fund manager choosing it for them.
If you want fund managers to choose the duration, you can look at dynamic funds instead.
I am still holding onto long duration funds and would only decide to exit once the first rate cut materializes.
Won’t there be multiple rate cuts?
There would be , but the rest would be priced-in once the first one takes place.
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I mean I was checking to redeploy more to debt. Do you suggest long duration or others?
I would not be able to provide you a specific advise, but my entire debt allocation is still in long duration bonds.
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