India’s Big Bond Funds Argue That Long-Term Rates Are Going Down
- Bandhan says budget dispels any doubt on fiscal commitment
- SBI Asset says prefers running a barbell portfolio in funds
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Some of India’s biggest bond fund managers say the nation’s interest rates are set for a long-term decline, ushering in a new investment era for the $1.3 trillion government debt market.
Bandhan AMC, Kotak Mahindra Asset Management Co. and DSP Investment Managers Pvt. are among those arguing that improving economic and fiscal conditions will lead to a structural decline in interest rates. As a result, the bulk of their debt funds are in bonds with 30 years or more in maturity to position for a bull market.