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Avoid speculating in long-duration funds, invest with 5-year plus horizon

If you are unsure about where rates are headed over the next year, go for dynamic bond funds

Bond yields slide as reports tout progress in global listing of Indian debt
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Sarbajeet K Sen

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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

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