Archive · 12 Nov 2025
Debt Funds Attract Investors Amidst Market Volatility: Tata AMC's Murthy Nagarajan
Imagine you have some money, and you want to keep it safe while also making a little bit more.
Sometimes, the stock market can be like a bumpy rollercoaster, going up and down a lot.
When that happens, people start looking at debt funds, which are like loans you give to companies or the government.
These funds usually give you a more steady and predictable return, like getting a small, guaranteed candy every day instead of a big, uncertain prize.
The Reserve Bank of India (RBI) might lower interest rates soon to help businesses grow, which is good news for these funds.
Experts suggest that now might be a good time to consider investing in certain types of debt funds, especially if you want your money to be safer.
They also say it's important to choose the right type of fund based on how long you want to invest and how much risk you are okay with.
Trying to get a super high return, like 10% guaranteed, is usually not realistic right now, so it’s better to aim for steady growth.
Debt mutual funds are attracting investor attention due to market volatility and the potential for steady returns.
The RBI's signal of supporting growth suggests a possibility of interest rate cuts, making debt funds more attractive.
Investors with a moderate risk appetite, seeking portfolio stability, are advised to consider debt funds.
Opportunities exist in duration products like gilt funds and corporate bond funds, with potential for yield fall.
A 10% risk-free annual return is not realistic in the current interest rate environment; balanced, risk-adjusted portfolios are recommended.
- Who
- Murthy Nagarajan, Head of Fixed Income at Tata Asset Management
- What
- Discusses the renewed focus on debt mutual funds, investment strategies in the current interest rate environment, and opportunities in the fixed income market.
- When
- In an interaction with Business Today, discussing the current market conditions and outlook.
- Where
- India's fixed income market and mutual fund space.
- Why
- Investors are seeking steady returns and portfolio balance amidst market volatility and global uncertainty, prompting a re-evaluation of debt funds.
- Expert
- Murthy Nagarajan, Head of Fixed Income, Tata Asset Management
- Key Theme
- Debt mutual funds gaining attention for steady returns and portfolio balance
- RBI Stance
- Indications of monetary policy support for growth, potential rate cuts
- Inflation Forecast
- CPI inflation expected at 2.6% for the current year
- Potential Rate Cut
- 50 basis points in the coming months
- Attractive Investments
- Gilt funds, corporate bonds, and short-term bond funds
- Investor Consideration
- Suitable for those seeking flexibility, stability, and hedging against global uncertainty