 "funds")
Most categories of debt funds offered low single-digit returns in 2022. The outlook for 2023, however, is brighter. Besides gaining from higher portfolio yields, investors could also get the benefit of capital gains in 2023.
Low returns in 2022
Supply disruptions caused by the Russia-Ukraine war led to commodity, including crude, prices rising sharply. A lot of pent-up demand came in as economies opened up. Supply and demand pressures combined to drive inflation up. Central banks across the globe, including the Reserve Bank of India (RBI), responded by raising interest rates rapidly.
“The effective overnight lending rate, which stood at