From a low of 6.98 per cent on May 16, 2023, the 10-year Government of India Security (G-Sec) is trading at 7.22 per cent. However, news of the inclusion of G-Secs in the JP Morgan Emerging Market Bond Index has sparked optimism in bond markets. Their inclusion in other bond indices could boost prices further. Investors who wish to gain from this development, and the possibility of a decline in interest rates, should choose between long-duration bond funds and dynamic bond funds.
Bond funds: Why now?
The inclusion of Indian G-Secs in foreign indices could lead to more money flowing into