The TRUST AMC Mutual Fund Special
Paisa Vaisa with Anupam Gupta
00:00
How to Deploy Your Money for One Year
If interest its goes down, the price of the bond goes up. The longer the majority of the bond, the higher is the percentage increase. A two year bond in a mutual fund portfolio has a two year majority and it rolls down. So even for the two year bond, if you are selling it at four %, which is a hundred business points lower than the five % which you bought, one % increasing to price of the Bond so your return has actually gone up to six%. That is the roll down, the power of rol down. And we have seen and that that there is always a persistent steepness tat the shorter end of the curve from lee zero to three
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