The ‘long’ and ‘short’ of debt funds

At the current juncture, when interest rates are threatening to move upwards, there is a question among investors — which funds are appropriate and which funds should one exit. Before we discuss the guidance part, let us look at some relevant facts for ease of understanding. The 16 debt fund categories are defined by SEBI in terms of contours i.e. what a fund in that category is supposed to do. Hence, when you take a decision to invest in a fund, you can take a look at the parameters of that category and get a fair idea.