Short-term debt funds turn best bet

Returns in %

1 week

1 year

Short term

0.06

5.86

Medium term

0.03

5.57

Floating rate

0.09

5.43

Liquid funds

0.10

5.34

Gilt - long term

0.11

4.55

Income funds

0.15

4.42

Gilt - short term

0.07

4.30

 The RBI has retained the Bank Rate at 6 per cent, while the reverse repo rate was raised by 25 basis points to 5.25 per cent, effective October 26. The cash reserve ratio (CRR) has also been kept unchanged at 5 per cent.  Despite RBI raising the reverse repo rate by 25 basis points, debt fund managers are maintaining that any major impact on debt funds is unlikely. According to Naval Bir Kumar, managing director, Standard Chartered Mutual Fund, RBI has acted much in line with the broader expectation of the market.