India Debt Fund Shifts to Short-Term Bonds Ahead of RBI Rate Hikes
Aditya Birla Sun Life AMC is prioritizing three-to-six-month bonds over longer-dated securities due to expectations of upcoming rate increases by the Reserve Bank of India. The fund house anticipates two rate hikes this year as the RBI addresses persistent inflation.
Aditya Birla Sun Life AMC has become more cautious on longer-dated bonds and is favoring three- to six-month securities, according to a fund manager, as it expects the Reserve Bank of India to start raising rates. The fund house expects two rate increases this year as the RBI works to address persistent inflation.