While income funds
invest in portfolios with an average maturity of more than seven years and
short-term bond funds invest in portfolios with an average maturity of less
than three years, bonds with residual maturity of 3-7 years are generally not
picked up by mutual
funds. These funds are
positioned to invest in this gap and take advantage of the prevailing
attractive yields," says Tanwir Alam, founder and CEO, Fincart, a
financial planning entity
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