Archive · 15 Jan 2026
Debt Fund Managers Adopt Cautious Strategies
India's top debt fund managers are being careful with their investments this year because it's been a tough time for making money.
The central bank is almost done cutting interest rates, and there isn't much demand from big investors.
Some managers, like those at Axis Asset Management and Bandhan AMC, are holding more cash to wait for better opportunities.
Others, like SBI Funds Management, think state bonds are a good deal because they offer higher returns.
Meanwhile, Aditya Birla Sun Life AMC is focusing on shorter-term corporate debt.
Financial expert Devang suggests that investors who are willing to take more risks can look into Gilt and Accrual funds for potentially higher yields.
India's top debt fund managers are adopting cautious strategies due to a tough year for returns.
The central bank is nearing the end of its interest-rate cut cycle.
Demand from key investors remains weak.
Axis Asset Management and Bandhan AMC have raised cash holdings for better investment opportunities.
SBI Funds Management finds state bonds attractive due to higher spreads, while Aditya Birla Sun Life AMC is backing shorter corporate debt.
- Who
- India's top debt fund managers and financial expert Devang
- What
- Adopting cautious strategies and identifying tactical opportunities in fixed income
- When
- As the central bank nears the end of its interest-rate cut cycle
- Where
- India
- Why
- To navigate a challenging environment for returns and explore potential high-yield opportunities
Cautious Approach
Opportunistic Approach
Investment Strategy
Cautious Approach
Managers like Axis and Bandhan are raising cash holdings to wait for better opportunities.
Opportunistic Approach
Devang suggests exploring tactical opportunities in Gilt and Accrual funds for higher risk-taking investors.
Market Outlook
Cautious Approach
Weak demand and tough market conditions are prompting a cautious approach.
Opportunistic Approach
Attractive spreads in state G-secs and higher yields in accrual-focused funds present opportunities.
- Market Condition
- Tough year for returns
- Central Bank Action
- Nearing end of interest-rate cut cycle
- Investor Demand
- Weak
- Axis Asset Management
- Raised cash holdings
- Bandhan AMC
- Raised cash holdings
- SBI Funds Management
- Find state bonds attractive
- Aditya Birla Sun Life AMC
- Backing shorter corporate debt
- Devang's Recommendation
- Explore Gilt and Accrual funds for higher risk-taking investors
