In the debt mutual fund category, long-duration funds gave maximum returns over an investment horizon of 1 month, 3 months, 6 months and 1 year. Credit risk funds gave maximum returns over an investment horizon of 3 years. Corporate Bond Fund and Gilt Fund with 10-year Constant Duration gave maximum returns over an investment horizon of 5-years and 10-years respectively
In the hybrid category, balanced hybrid fund/aggressive hybrid fund offered the highest return of 12.89% in the 10 year horizon, followed by multi asset allocation fund which gave 12.53% return in the same time period.In the three year horizon, multi asset allocation offered the highest return of around 16.19%.
There are around two sub-categories in solution oriented mutual fund categories – retirement fund and children’s fund. Children’s funds have offered the highest return of around 12.29% in the 10 year horizon followed by retirement funds which gave 11.64% return.
The domestic equity markets have witnessed some initial volatility as the outcome of the general elections did not come in line with market expectations. However, markets rebounded sharply on hopes of political stability and policy continuity. Gains were extended after India’s GDP growth came better than expectations and stood at 7.8% in the fourth quarter of FY24. Market sentiments were further boosted after the Reserve Bank of India upgraded the GDP growth rate of the domestic economy to 7.2% from 7.0% for FY25 even though it kept the key policy repo rate unchanged.
Bond yields also rose initially and witnessed volatility amid the outcome of general elections, however, the trend reversed, and bond yields fell following decline in the U.S. Treasury yields after a softer-than-expected U.S. inflation print in May 2024 boosted expectations of rate cuts, despite the U.S. Federal Reserve projecting only one cut this year. Meanwhile, the domestic government bonds under the Fully Accessible Route were included in the JPMorgan emerging market debt index on Jun 28, 2024.
