SBI Mutual Fund's CIOs talk about possible rate hikes from RBI, bond yields and why high valuations of small-cap stocks will impinge upon returns
SBI Mutual Fund, India’s largest mutual funds by assets under management (AUM) of around Rs 8 lakh crore ($97 billion), has a model that, at the moment, is positive on fixed income and negative on equities. Its chief investment officer-fixed income, Rajeev Radhakrishnan, who leads investment decisions for nine debt funds, says the fund house is seeing further inflows in hybrid funds that have seen increased investor interest.
Once retail investors see visibility on Reserve Bank of India (RBI) rate cuts—which will provide capital appreciation benefits in addition to higher yields—Radhakrishnan says the fund house will start seeing large inflows into debt products.