MFs turn bullish on government bonds

Indian mutual funds (MFS) have stepped up government bond purchases after a recent spike in yields, and are likely to continue buying in the near future as they eye gains over the medium term, five fund managers said.

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Several MFs were light on debt ahead of the monetary policy review on 6 October, but with yields surging postpolicy, many decided to add positions, Sandeep Yadav, head of fixed income at DSP Mutual Fund, said.

"These positions are mostly for medium term, and from that perspective, Indian bonds at current levels seem to be a good buy."