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 . These funds are
positioned to invest in this gap and take advantage of the prevailing
attractive yields," says Tanwir Alam, founder and CEO, Fincart, afinancial planning entity.
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