Mixed signals from bond fund managers; what should mutual fund investors do

economictimes.indiatimes.com:

bond market. The disparate positioning of various dynamic bond funds, which are considered a proxy for the fund house’s fixed income stance, indicates that fund managers are not aligned on interest rates. The positioning of dynamic bond funds is best explained by the portfolio duration or average maturity.

Both reflect the sensitivity of the portfolio to interest rate changes. Bond prices and interest rates are inversely related.
Longer tenure bonds are particularly sensitive to interest rate changes.

When fund managers expect rates to fall, they increase the portfolio duration or average maturity by switching to longer tenure bonds. This allows the fund to fully capture capital appreciation in underlying bonds. When interest rates are likely to climb, fund managers typically reduce the duration or average maturity by moving to shorter duration bonds.

This protects against erosion in value from marked-to-market hit on underlying bond prices. We looked at what dynamic bond funds are actually hinting at.
The maturity profiles of dynamic bonds paint a contrasting picture.

Mirae Asset Dynamic Bond Fund and UTI Dynamic Bond Fund are running an The contrasting positioning of various dynamic bond funds indicates that the fund managers are not aligned on interest rates. Mixed signals from bond fund managers average portfolio maturity of 3.3 years and 4.51 years, respectively. PGIM India Dynamic Bond Fund and ICICI Prudential All Seasons Bond Fund have also opted for a conservative stance with a preference for shorter tenure bonds.