Go Long on 30-Year Bonds to Play India Story, Fund Manager Says
- Bandhan expects reinvestment to be biggest risk investors face
- Dynamic bond fund has more than 90% of holdings in 2053 paper
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Buying longer-maturity Indian government bonds is probably the best strategy to boost returns in the $1.3 trillion market that’s primed for a sustained drop in yields.
That’s the call from Suyash Choudhary, a two-decade veteran, who has the bulk of his two main funds in 30-year notes. He believes that as these investments mature over the next few years, bond yields will be significantly lower. Investors who ignore this may end up with lower returns.