The recent sharp fall in inflation has resulted in RBI lowering interest rates - a trend that could further continue, leading to a spur in economic activity. How can the investor benefit from this scenario?

Typically, when interest rates fall, the longer-term bond funds deliver better growth. Conversely, when interest rates are stable or rising, high-yielding medium or short-term debt funds perform better. However, for an investor, moving between funds to try and match the interest rate movement could be not only tricky but also tax-inefficient.

But, what if one could get the best of all worlds?

Introducing the L&T Resurgent India Corporate Bond Fund

This one-of-a-kind fund aims to invest in high-quality long-tenure bonds when interest rates fall and shift to the potentially high-yielding medium-term instruments when interest rates stabilise.