I want advice on Bharat Bond Fund 2031. While the fund has very low credit risk, but due to the long term maturity of the portfolio interest rate risk is high for this Bharat Bond Fund. In case the interest rate increases in future, which is anticipated in the present environment, the portfolio of this fund may get impacted. In debt investing, the longer the maturity of the portfolio; the higher is the interest rate risk. You may invest in longer duration funds when the interest rate starts increasing.

Source: Mint July 24, 2021 11:15 UTC