Debt fund YTMs stabilise, but peak still a few basis points away

YTMs of all debt fund categories, except credit risk and overnight, in a narrow range of 6.3-7.3%

The yield to maturity (YTM) of debt mutual fund (MF) schemes -- an indication of future returns -- has stabilised in the past couple of months after a steep rise between July and September 2022, shows Value Research data. Fund managers and advisors believe though YTMs have steadied, their peak is still a few basis points away, especially for funds that have a longer horizon.

"YTMs have risen for some categories in the past couple of months, while being stable for others. They can still go up but not much,” said Parijat Agrawal, head-fixed income, Union Asset Management Company.

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