As per my asset allocation, I have invested in debt funds. Now I understand that it will give me a meagre return due to rate hikes.
My investment is in:
ABSL Short duration fund
HDFC Short duration fund
ICICI Corporate Bond Fund
ABSL Liquid Fund
What is the way out for me? Should I exit?
Ans: Short duration is suitable for rising interest rate environment, so no need to exit.
Though I want to invest for the long term, I have my quota in equity MF. Hence do not want to invest more in equity MFs.
a) No issues
Also is it advisable to lock money in Bajaj Finance or HDFC FD now or one should wait for further rate increase?
b) Should wait for some time before taking any decision.