The Reserve Bank of India on Friday announced that MPC has decided to keep the repo rate unchanged at 5.25%. According to market experts, this decision to keep rates unchanged reflects cautious approach amid ongoing global uncertainties and persistent inflation risks.Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance told ETMutualFunds that the RBI’s decision to keep rates unchanged reflects a cautious approach amid ongoing global uncertainties and persistent inflation risks and for debt fund investors, this suggests a stable interest-rate environment in the near term rather than significant changes. Also Read | Quant Smallcap among 16 equity mutual funds that multiply lumpsum investments by over 2.3x in 5 years Minocha further said that for equity investors, the policy provides continuity and supports market sentiment, although factors such as earnings growth and global developments will continue to have a greater impact on returns than this single policy decision.Another expert, Pallav Agarwal, Certified Financial Planner at Bhava Services LLP, told ETMutualFunds that the rate cut cycle seems to be over for now and the debt fund NAVs won't get a meaningful boost from here. In fact, with risk of rate hike building due to crude and rupee pressure, long duration funds now carry more downside than upside, Agarwal further said.The decision to keep the repo rate unchanged in the June policy meeting marks the second consecutive such move by the RBI. In its policy meeting on Friday the MPC also decided to continue with the neutral stance. In the policy meeting on December 5, 2025, RBI reduced the repo rate by 25 basis points.The RBI Governor in his speech said that the global environment has deteriorated since the last policy meeting with the conflict lingering amidst a fragile truce. The adverse implications of the extended disruption in supply chains and elevated energy prices are reflected in the moderation of growth and increase in inflation projections from the April policy. He further said that on the external financing front, buoyant gross foreign direct investment (FDI) and higher net FDI in 2025-26 underscore the continued interest of global investors in India. With MPC keeping the repo rate unchanged for a third consecutive month, Agarwal said that in debt, prefer short duration, floating rate, and Banking & PSU funds and avoid gilt/long duration. In equity, Multi Asset Allocation funds and Flexicap funds are the best bets given the inflation uncertainty and geopolitical backdrop, he further said.Minocha said that for debt investments, short duration funds, corporate bond funds, and dynamic bond funds may be suitable depending on the investment horizon. He further said that in equities, flexi cap funds, large and mid cap funds, multi cap funds, and index funds remain effective for long-term planning, maintaining SIPs and a diversified asset allocation is likely to yield better results than reacting quickly to policy announcements or market headlines.Also Read | NFO Alert: 360 ONE Mutual Fund launches Equity Ex-Top 100 Long-Short Fund under its SIF segment DynaWhat other analyst saySneha Pandey, Fund Manager-Fixed Income, Quantum AMC said that in volatile times, investors may evaluate dynamic bond funds over fixed maturity strategies, given their flexibility to adjust to shifting yield curves and liquidity conditions and the key is to avoid layering multiple risks in debt portfolios in such volatile times. Pandey also said that anchoring allocations in G-secs and high-quality AAA-rated PSU papers ensures accrual gains without stretching into lower-rated credits, which could prove costly in a risk-off environment and the emphasis now should be on resilience and credit quality, not chasing incremental yield.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.