<b>Your Money:</b> Move into shorter-duration debt funds

As the rate cut cycle over for now, investors bet largely on funds for duration not exceed 3-4 yrs

With the Reserve Bank of India (RBI) choosing not to cut the policy rate in its monetary policy review, and more significantly, moving from an accommodative to a neutral stance, it appears that the current policy rate cut cycle, which started in January 2015, is over for now. Debt fund investors should move the bulk of their investments into short- and medium-term funds and to dynamic bond funds if they have not done so already, say market experts.

According to debt fund managers, RBI did not cut policy interest rates because its focus has now shifted to ensuring macro-economic stability.