Go for a prudent mix of accrual and dynamic bond funds

RBI is clearly focussed on achieving its medium-term inflation target of 4% on a sustainable basis

The bond markets have had a secular bull run since 2014. A combination of prudent fiscal policies, an inflation centric monetary policy, benign global interest rate and liquidity conditions and last but not the least, improved domestic liquidity conditions have been the key drivers of this superior performance.

2017 though, has started on a different note. Buoyed by slightly better growth prospects and higher commodity price induced inflation prints, global central banks, led by the US Fed, are starting to withdraw from an extremely loose monetary stance. The Reserve Bank of India (RBI), too, in its February policy changed its