How to benefit from steep yield curve?

Key highlights

1. Investor’s dilemma is on 2 counts as below-

• Investing in long term bonds does look attractive as yields are higher, but it also seems risky for many as they expect RBI to reverse policy stance at some point in future

• Investing in short term bonds seems safer option amidst expectations of rising yields, but short-term yields are too too even to beat inflation

       2.One way to play a steep yield curve to your benefit is through target maturity or roll down strategies.

       3.Benefits of investing in target maturity/ roll-down strategy funds