MC30 scheme review | An all-weather debt fund that delivers better returns across rate cycles
With an increase in bond yields, thanks to the policy rate hikes by the RBI, the overall outlook for fixed-income return improves. Debt schemes with short-maturity profiles, such as ICICI Prudential Short-Term Fund, tend to benefit and are likely to deliver better returns.
Returns from debt mutual funds were muted over the last two years. Ever since the pandemic broke out, central banks across the globe have been working hard to boost economies by cutting policy rates. This, in turn, lowered the yields, making accrual-focused funds post poor returns.