Kalpesh Ashar of Full Circle Financial Planners on Friday said the Reserve Bank of India's (RBI) repo rate cut is a good sign for the debt funds.
"It is always advisable to tell my clients that it is better to be in the short-term and medium-term type of duration type of funds as they are less riskier even events can come and go, but if they pan out the period, they will be much safer. As far as the debt funds go, I am always on the side that anything with the duration of up to three years," Ashar said.
Further, he said, "The investors who have seen the last year’s return, who have come with a short sight in the market and more importantly without highlighting their financial planning goals are the ones who are disappointed. They are the ones who probably said that we cannot take it anymore. There have been no returns in the first three-six months period and they said bye to the whole thing. However, the people who have stayed the entire cycle, they have seen events happen, those are the people who are continuing with their Systematic Investment Plans (SIPs)."