Mr. Anil Bamboli

Mr. Anil Bamboli

Senior Fund Manager - Fixed Income

HDFC Mutual Fund

Mr. Anil Bamboli, CFA is a Senior Fund Manager of Fixed Income at HDFC Asset Management Company Ltd. Mr. Bamboli joined the firm on July 25, 2003. Previously, he served as an Assistant Vice President at SBI Funds Management Pvt. Ltd. from May 1994 to July 2003. Mr. Bamboli has extensive experience in fund management, research, and fixed income dealing. He is a Chartered Financial Analyst. Mr. Bamboli received an M.M.S degree in Finance and a B.Com degree.


1. What are your views on debt market? How has the yield curve moved in recent times and in which direction you see them moving in near to mid-term and why?

Anwer: With encouraging developments in inflation, INR, US interest rates and improved clarity on GST, monsoons etc., we once again feel that the risk reward in fixed income markets is reasonable now.

The Monetary Policy Committee (MPC) in its recent credit policy review kept policy repo rate unchanged with a less hawkish tone and sharply lowered inflation projections for this fiscal year. In case the incoming data reaffirms the moderating path of inflation, it may create some space for easing in our opinion.

2. Going forward, what will be the key driving factors for the fixed income yields?

Anwer: Going forward, the incoming data on inflation and growth will be closely watched. Further, the spatial and temporal distribution of monsoon, risk of fiscal slippages with announcement of farm loan waivers and global political & financial risks materialising into imported inflation will remain the few driving factors in the near to medium term. Also, we believe that the implementation of GST may not have a material impact on overall inflation.

3. What is your fund house strategy for both long term and short term debt funds?

Anwer: We normally take medium term view on interest rate cycles. Based on this, the long term/duration funds, adjust the average maturity of the products.

In the short/medium term space, we have 2-3 strategies around credit quality and active duration management.

4. What would be your advice to investors looking to invest in debt funds across varying investment horizons?

Anwer: We recommend investors to invest in debt funds based on their risk appetite and investment horizon:

Fund Category

Suitability

Investment Horizon**

High Yield Accrual funds

Suited for investors looking for accrual strategy with an understanding of the credit risks involved

Investment horizon of 1 year and above

Short/Medium Term Duration funds

Suited for investors looking for accrual strategy with low interest rate risk

Investment horizon of 6 months and above

Long Term Duration funds

Investors looking for capital appreciation

Investment horizon of 3 year and above.

Tactical allocation to take advantage of fall in yields over the short term

** HDFC Mutual Fund/AMC is not guaranteeing/offering/communicating any indicative yields or guaranteed returns on investments made in the scheme(s) offered. The investment horizon vis-à-vis Fund Category is based on current view and is subject to change. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the scheme

DISCLAIMER: The views expressed are based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. The information contained in this document is for general purposes only. The document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information/ data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Past performance may or may not be sustained in future. Neither HDFC Asset Management Company Limited and HDFC Mutual Fund (the Fund) nor any person connected with them, accepts any liability arising from the use of this document. HDFC Mutual Fund/AMC is not guaranteeing/offering/communicating any indicative yields or guaranteed returns on investments made in the scheme(s). The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

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