Riding the Interest Rate Cycle
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund
The views in the special report on exiting equity MFs in a falling market did make sense but would managing the portfolio tactically be meaningful for me as a retiree?
I liked the way you explained dynamic bond funds in your earlier issue. But is it a wise thing to invest in them in the present market scenario? - Lakshya Vakharia
Editor Responds: Investing in dynamic bond funds is a risky affair. Although on paper it seems to be a good concept, in reality, it is quite difficult to predict the interest rate cycle. Therefore, if you are an aggressive investor with an investment horizon of over five years, considering dynamic bond funds is fine. Else, investing in target maturity funds and aligning them to your financial goals is a prudent thing to do.