The Reserve Bank of India (RBI) has left key policy rates unchanged in its policy review today. Stick to your financial needs," he adds.Debt mutual fund schemes, especially long-term debt mutual fund schemes, are extremely sensitive to changes in interest rates in the economy. A falling rate is great news for debt mutual fund investors because of the inverse relationship between interest rates and bonds prices. When interest rates fall, bond prices go up and that boosts the Net Asset Value (NAV) of debt mutual funds . These days most advisors ask investors to park their money in liquid, ultra short-term, and short-term debt schemes.

Source: Economic Times December 06, 2017 10:41 UTC