Debt Mutual Fund Strategy

Classification - Restricted ☐ ☐ Debt Mutual Fund Strategy Given the expected volatility and uncertainty and expectations of flattening of the yield curve, staying invested at the short and the very short end of the yield could be better from risk reward perspective currently. Thus, investors should look at funds oriented towards the shorter end of the yield curve for relative stability in the near term and to benefit from the reset in interest rates on the higher side. For this one can look at Short Duration Funds, Money Market Funds, Ultra Short Duration and Low Duration Funds for a horizon of 12 months and above. For investors looking for accrual strategies, they can consider Target Maturity Index Funds that invest in a mix of better quality bonds with investment horizons matching the maturity of the funds. Investors who are comfortable with volatility and have a longer investment horizon could look at Dynamic Bonds for a horizon of 24 months and above. For a horizon of 3 months and above Arbitrage and Money Market Funds can be considered. Whereas, for a horizon of up to 3 months investors can consider Overnight Funds and Liquid Funds. Investors should invest in line with their risk profile and product suitability. 3 Confidential/Restricted HDFC BANK HDFC BANK RESEARCH We understand your world Classification - Restricted

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