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RBI Repo Rate Decision: Impact on Debt Mutual Funds
RBI repo rate changes influence debt fund yields and NAV volatility. Duration-heavy funds react more to rate cuts/hikes; investors should match debt category to horizon.
Key Takeaways
- •Rate cuts often boost bond prices in the short run.
- •Credit risk funds are separate from rate sensitivity.
- •Check scheme factsheet duration before switching.
FAQ
Should I change debt funds after every RBI meet?
Usually no — align debt allocation to goals and horizon, not headlines.