Impact of interest rates movement in Bond funds ?

POSTED BY radhevajrakaya ON December 11, 2013 8:57 pm COMMENTS (2)

Investment  in bonds or bond funds, one has to be  mindful of the impact of interest rate movements on your investment. Bond prices move inversely to interest rates. So when rates rise, bond prices fall and vice versa. 

Here Interest Rates mean the Bank FD if not than to what it indicates? Please Someone clear my Doubts.  Bond market is sensitive to what ?

 

 

 

2 replies on this article “Impact of interest rates movement in Bond funds ?”

  1. ashalanshu says:

    Dear Radhe, the interest rates here stands for the policy rates better known as Repo and reverse repo rates and CRR controlled by RBI.

    thanks

    Ashal

    1. radhevajrakaya says:

      Thanks Ashal.

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