Investing in MFs: Here's how Budget 2018 could impact the bond market

If it maintains fiscal prudence, the bond market could turn bullish

“The safest way to get decent returns is via mutual funds.” I’ve heard versions of this statement from half-a-dozen friends in the last year. Most of them are invested in debt mutual funds as well as diversified equity funds.

It’s true that there is no safer way to get a decent nominal return. A bank fixed deposits offers much less interest. Real estate is in the doldrums. Gold has been almost flat through 2017. But that safety is relative. Everyone understands that equity funds carry risk but debt mutuals can also suffer loss of capital. 

Mutual funds trade debt. They