New game plan for investing in debt funds, where to invest money amid changing interest rates?: – ..

News India Live, Digital Desk: The Reserve Bank of India (RBI) monetary policy of February 2026 and the current economic scenario Debt Funds The investment strategy has taken a new turn. While on one hand interest rates remain stable, on the other hand there are expectations of possible future rate cuts in the market. In the monetary policy review of February 2026, RBI has raised the repo rate. 5.25% But has remained stable and has maintained its stance ‘Neutral’. This stability is a clear signal to investors that interest rates have reached their peak.

1. New investment strategy

In the changed environment, experts have advised investors to invest in these categories depending on their goals:

Long Duration and Gilt Funds (for 3+ years):

Since interest rates are now likely to come down, Long Duration Funds And Gilt Funds Can give the most benefits. The NAV of these funds increases rapidly when interest rates fall.

Short Term Debt Funds (for 1-3 years):

If you do not want to take risk and want stability for the medium term, then Short-Term Debt Funds Or PSU/Corporate Bond Funds Are better. Here one gets the benefit of ‘Accrual’ income.

Dynamic Bond Funds:

For investors who are unable to decide when the rates will fall, ‘Dynamic Bond Fund’ is the best option. Here the fund manager himself changes the duration of the portfolio according to the market movements.

2. Impact of Taxation – 2026 Rules

It is now mandatory to keep tax in mind while investing in debt funds:

Slab Rate Tax: The entire income on debt funds purchased after April 1, 2023 is now yours. Income Slab According to this, it comes under tax category. The benefit of indexation is no longer available in this.

strategy: Be sure to compare post-tax returns with fixed deposits (FD). However, debt funds are still higher than FDs. Liquidity provide.

3. Risk Management

Avoid Credit Risk: Given the current global uncertainties, prefer funds with only high ratings (AAA or AA+) corporate bonds or government securities (G-Secs).

Bond Laddering: Divide your investment among bonds of different maturities (like some 1 year, some 3 years, some 5 years). This reduces the impact of fluctuations in interest rates.

4. Economic snapshot of 2026