SBI Funds Management Advises Caution on Long-Term Bonds

SBI Funds Management reported on November 10, 2026, that rising bond yields have increased the attractiveness of fixed-income investments. The fund house advised investors to avoid large bets on long-term bonds, citing tighter monetary policy, changing liquidity conditions, and global uncertainty surrounding the unresolved conflict in Iran.

Market yields rose over the previous month following monetary policy hikes and measures to reduce surplus banking liquidity. While a decline in crude oil prices has improved sentiment toward Indian assets, the fund house warned that a permanent resolution to the Iran conflict is necessary to sustain inflation moderation and stabilize yields.

SBI Funds suggested that investors with core fixed-income allocations gradually shift toward short- to medium-term products with maturities of one to three years, such as fixed maturity and target maturity funds.