More rate hikes lined up, yields may have peaked: SBI MF's Radhakrishnan

He reveals why fixed maturity plans (FMPs) remain relevant, notwithstanding the emergence of target maturity funds (TMFs) in the 'predictable return' space in debt

Bond yields may have already peaked as the market prices in the next round of rate hikes, says Rajeev Radhakrishnan, chief investment officer-fixed income, SBI Mutual Fund. In conversation with Abhishek Kumar, Radhakrishnan reveals why fixed maturity plans (FMPs) remain relevant, notwithstanding the emergence of target maturity funds (TMFs) in the ‘predictable return’ space in debt. Edited excerpts:

Yields have risen to adequate levels. Do you see good days ahead for debt fund investors?

I think this is the right time to invest in debt funds. Yields are attractive in absolute terms and also relatively better than other investment options. It