 "funds")
One positive impact of rising interest rates has been that portfolio yields of debt mutual funds (MFs) have improved across categories. Their returns, which were muted over the past few years, are likely to turn around in the near future.
Rising bond yields
The cumulative 90-basis-point (bp) rate hike and other policy tightening measures by the Reserve Bank of India (RBI) have pushed bond yields higher over the past six/seven months.
The 10-year government security (G-sec), which had touched a low of 5.75 per cent on May 22, 2020, is at 7.37 per cent currently.
Yields to maturity (YTM) of
