After the Reserve Bank of India reduced the repo rate by another 50 basis points to 5.50% and a 100 basis point CRR cut, the mutual fund experts believe that the fixed income landscape has turned even more favorable for investors. Further, the CRR cut is a strong liquidity injection, which will further push down short-end rates and improve system-wide liquidity. “While duration strategies like gilt, long-duration, and dynamic bond funds remain relevant, the combination of already-priced-in rate cuts (via the OIS curve) and surplus liquidity suggests that returns from duration could moderate going forward,” Sagar Shinde, VP of Research at Fisdom shared with ETMutualFunds.