As interest rates rise, bond prices fall. This is because investors prefer bonds with higher coupon rates.
Simply put, most debt funds, especially long-term bond funds, suffer heavy losses in a rising interest rate environment. So the plans to invest in short-term bond funds (bond funds) are a little better.
If you are confused about which fund to invest in, investing in the two bond funds mentioned in this article can be a good choice.
Best Bond Funds to Invest in 2022:
1. Kotak Dynamic Bond Fund
2. ICICI Prudential All Seasons Bond Fund
If you are looking for a savings plan for short term 3 to 5 year investments and are not concerned about interest rates then you can invest in the funds mentioned above.
Disclaimer: Mutual fund schemes are subject to market risks. Consult your advisor before investing and invest at your own discretion.