Most of the Debt Funds have delivered double digit returns in 2016. Within the Debt Fund category the GILT long term funds have been the best performers, owing to gains of more than 14% recorded over the past one year.
The FoF Debt category has delivered 13.40% returns over past one year.
GILT medium term category of debt funds have delivered 12% over past one year.
The Long Term Income Debt fund category has managed to deliver 11.5% over one year.
The Medium Term Income Debt fund category managed to deliver 11% over past one year period.
Clearly the GILT funds that invest in long term tenured bonds have been the best performers over the past one year.
However with RBI changing its stance from accomodative to neutral the short term tenured GILT funds can be expected to outperform the other debt fund categories.
Investors may look at parking funds in shorter tenure GILT funds in view of revised RBI monetary stance.