MFs recalibrate portfolios as bond sentiment improves

ADDING LONG-DURATION PAPERS

- CHRISTINA TITUS

WITH THE BOND market entering the second half of FY26 in a positive mood, backed by the monetary policy that has left the room open for more rate cuts, asset management companies (AMCs) are recalibrating strategies to add longer-duration papers, said fixed income heads and debt fund managers.

“In the short term, the outlook is relatively positive, reflecting more of a tactical shift in positioning with a slight increase in duration bonds (15 years and above). This is mainly based on expectations that the market sentiment might improve further and there could be a minor pullback,” said Rajeev Radhakrishnan, CIO - fixed income, SBI Mutual Fund.