MF Corner: Here's what experts say on fixed income instruments

Devang Shah, Co-Head, Fixed Income at Axis Mutual Fund, and Raghav Iyengar, Chief Business Officer at Axis AMC discussed the case of investing in fixed income and if it makes sense to park money in them now.

Shah said, “We had seen some bit of pressure on mutual fund schemes and we have seen some bit of outflows. But I think a large part of the redemption or the pain in bond yields is behind us. In fact, incrementally we have started seeing flows in categories like Target Maturity Funds and Short Term Corporate Bond Funds."

Iyengar said, “Today, if you want to really capture an upside in interest rates, I think we could look at something like a liquid fund or ultra-short term fund or a money market fund. So ideally, each investor obviously has to look at their risk appetite. There are various schemes looking at various types of investments. Some are AAA schemes, while some are AA schemes."