With an average annualised return of 10 per cent, income fund investors have had a couple of good years. However, considering that Consumer Price Index- based inflation is currently closer to the upper end of the Reserve Bank of India’s (RBI’s) target and the new governor is likely to continue to keep a focus on inflation, we might not see an interest rate cut any time soon. It may be recalled that after Raghuram Rajan’s decision to quit RBI, the bond market witnessed a smart rally on expectations that the new governor might cut rates faster. However, as became evident after the announcement of Urjit Patel’s appointment that there might not be a significant change in RBI’s monetary policy stance, the bond market witnessed some selloff. Leaving investors with the dilemma of whether the current scenario warrants a realigning their debt fund portfolio. Although the current scenario doesn’t appear favourable to the short- term prospects of income funds, investors will do well not t