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Duration Call in Perspective

posted on 21 October 2014 by Sunil Jhaveri

Revisiting Our Call on Hold & Add Strategy in Income Schemes Post July 2013 Duration Call Fiasco Everyone is aware of the outcome of investment call in Duration schemes (Income & GILT schemes) given by the industry in January 2013. Post July 2013 (when RBI raised interest rates v/s cutting rates as was expected by the industry) Income schemes started generating negative returns v/s almost double digit returns they had generated from January 2013 till April 2013. Though Income fund story was almost over by April 2013 end when Fed announced tapering of QE; till June 2013 these schemes did generate double digit returns.