Interest rates have softened over past 1 year even without any monetary policy intervention by RBI. 2013 was a year when duration call backfired & investors rushed back to either FMPs/FDs or Accrual Schemes with lower durations. Since then interest rates have softened from highs of August/September 2013 till date (as is evident from the table below); even pure accrual schemes with average maturities ranging between 1-3 years also benefited & generated double digit figure returns. However, current net YTMs of these schemes have come off significantly from 2013 highs.
