SBI-group fund recommends medium-duration debt funds as rates may start falling

Investment advisory from India’s State Bank of India-group highlights medium-duration debt mutual funds as a preferred category for investors in October 2025. With the current interest-rate cycle indicating peak rates and potential decline ahead, these funds (Macaulay duration ~3-4 years) are seen as positioned to deliver superior returns when rates begin falling. The advisory also emphasised checking portfolio duration and credit-quality details in schemes. Several names cited include those from large Indian AMCs. Investors were warned that these funds still carry interest-rate sensitivity and are not risk-free.