As a rule, remember that in times of softening or low interest rates, one must opt for long-term debt funds.

Bond prices and bond yields have an inversely proportional relationship. This means that bond yields lowering means the bond prices will increase. Thus, from an investor point of view, you must welcome lower bond yields.

As there is expectation that the repo rate could be lowered by 50 basis points in 2019-20, long-term debt funds are the way to go right now.

Hence, fund managers are of the view that the yields of the three-, five- and ten-year bonds could decrease by 50-75 basis points (bps) in the medium term.